Ecos India Mobility and Hospitality IPO sees 9.56 times subscription on day 2, NIIs play key role

Ecos India Mobility and Hospitality IPO

New Delhi-based Ecos India Mobility and Hospitality's initial public offering continued to generate strong interest at investors' desk, being subscribed 9.56 times the issue size. Investors bought 12.03 crore equity shares, compared to offer size of 1.26 crore equity shares.

The chauffeur driven car rental service provider targets to mobilise Rs 601.2 crore via public issue, which comprised solely an offer-for-sale of 1.8 crore equity shares by promoters. The price band for the issue is Rs 318-334 per share.

The offer remained on investors' radar from the first day of bidding when it was subscribed 3.36 times. It will close for subscription on August 30.

The non-institutional investors remained at the front to boost the subscription numbers, buying 23.47 times the allotted quota, followed by retail investors who picked 8.99 times their reserved portion. However, the response remained muted from the qualified institutional buyers who subscribed just 0.10 times the part set aside for them.

The anchor book of Ecos India Mobility and Hospitality, which opened for a day on August 27, had also garnered good interest from institutional investors. It mobilised Rs 180.4 crore from 14 anchor investors. Whiteoak Capital, Acacia Banyan Partners, Aditya Birla Sun Life Trustee, Invesco India, Troo Capital, Nomura Trust, ICICI Prudential Mutual Fund, Franklin India, and Motilal Oswal Mutual Fund were amongst the 14 investors.

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The entire net issue proceeds will go to promoters, the selling shareholders. Meaning, all the net IPO proceeds will be received by the selling shareholders - Rajesh Loomba and Aditya Loomba. Hence, the company will not receive any money from the IPO.

Ecos India Mobility and Hospitality has been providing chauffeured car rentals and employee transportation services to corporate customers, including Fortune 500 companies in India, for more than 25 years. It has a pan-India presence across 109 cities through its own vehicles and vendors, operating a fleet of more than 12,000 economy to luxury cars, mini vans and luxury coaches.

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