Ecos India Mobility & Hospitality files IPO papers with only OFS component

Ecos India Mobility & Hospitality IPO papers filed

New Delhi-based Ecos (India) Mobility & Hospitality has filed preliminary papers with the markets regulator SEBI for fundraising through an initial public offering.

The IPO consists of only an offer-for-sale (OFS) component comprising 1.8 crore equity shares with no fresh issue component. The OFS is 30 percent of the total paid-up equity capital.

Promoters Rajesh Loomba will be selling 99 lakh equity shares and Aditya Loomba 81 lakh equity shares in the OFS. This means the entire issue proceeds, barring IPO expenses, will go to selling shareholders i.e. promoters, and the company will not receive any funds from the issue.

The chauffeured car rentals (CCR) and employee transportation services (ETS) provider has a pan-India presence in 109 cities in India with more than 9,000 economy to luxury cars, minivans and luxury coaches.

Also read: Shapoorji Pallonji Group firm Afcons Infra files draft papers to raise Rs 7,000 crore via IPO

The company has an asset-light model business as the maximum business is operated through vendors' vehicles which were 91 percent of the total fleet size in 6MFY23 and the remaining 9 percent of vehicles are owned by the firm.

The Loomba family-owned company clocked a massive 341.6 percent on-year growth in consolidated net profit at Rs 43.6 crore for the year ended March FY23, with healthy topline and operating numbers. Its revenue from operations during the same period increased by 187 percent to Rs 422.7 crore.

EBITDA (earnings before interest, tax, depreciation and amortisation) during the last financial year grew by 286.3 percent to Rs 69.7 crore with a margin expansion of 420 bps at 16.5 percent compared to the previous fiscal.

Also read: Canara Bank to dilute 13% stake in Canara Robeco Asset Management through IPO

In the first half of FY24, Ecos (India) already surpassed half of the bottomline and topline of the previous year with profit coming in at Rs 30.4 crore on revenue of Rs 268.5 crore.

Equirus Capital and IIFL Securities are merchant bankers for the issue, while Link Intime India is the registrar for the issue.