ECOS (India) Mobility and Hospitality listing: Shares make decent listing; what should you do?
Even as the market mood remained muted, ECOS (India) made a decent debut on Wednesday (September 4, 2024).
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ECOS India Mobility made a decent debut in Wednesday's session. The stock on the NSE against the IPO issue price of Rs 334 made a debut at Rs 390, a 17 per cent premium, while on the BSE it listed at Rs 391.3 per share.
Post the issue, promoter shareholding in the company shall go down to 67.75 per cent.
The company's issue garnered the most subscription from the qualified institutional buyer (QIB) category. In all, the issue was subscribed over 64 times.
Post listing view
Shivani Nyati, Head of Wealth, Swastika Investmart said, "While the listing was encouraging, investors should remain cautious due to the company's mixed financial performance. Despite top-line growth, profitability has declined, indicating potential challenges in managing costs and maximizing returns.
The IPO's valuation appeared higher, based on the P/E ratio, which might have contributed to the relatively modest listing gain compared to the pre-listing hype. Additionally, the company's status as a complete offer for sale means it won't receive any new funds from the IPO, potentially limiting its ability to accelerate growth or address challenges, she added. In conclusion, ECOS Mobility & Hospitality's strong listing debut is a positive sign, but the mixed financial performance and elevated valuation warrant a cautious approach. Those who want to hold it may keep a stop loss at around 350, advises Nyati.
Zee Business Managing Editor Anil Singhvi's view
ECOS (India) Mobility & Hospitality IPO Subscription Opens: Zee Business Managing Editor Anil Singhvi said that investors must subscribe to this IPO for listing gains. "Apply for just listing gains for now. Whether you should hold it or not is something that we will decide after the listing," he said.
About the company
ECOS India Mobility and Hospitality was incorporated on February 15, 1996. The company is primarily engaged in providing chauffeured car rentals (CCR) and employee transportation services (ETS) to corporate customers, including Fortune 500 companies in India.
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