ECOS (India) Mobility & Hospitality Limited is set to open its initial public offering (IPO) of Equity Shares on Wednesday, August 28, 2024. The total offer size comprises an Offer for Sale of up to 18,000,000 Equity Shares with a face value of INR 2 each. The IPO will close on Friday, August 30, 2024. The Price Band for the offer is fixed between INR 318 and INR 334 per Equity Share, and bids can be made for a minimum of 44 Equity Shares, with bids in multiples of 44 Equity Shares thereafter.
Equity shares details
The Anchor Investor Bidding date is slated for Tuesday, August 27, 2024. The Offer for Sale includes up to 9,900,000 Equity Shares by Rajesh Loomba and up to 8,100,000 Equity Shares by Aditya Loomba, the Promoter Selling Shareholders. These shares are being offered through the Red Herring Prospectus (RHP) filed with the Registrar of Companies, National Capital Territory of Delhi and Haryana at New Delhi, on August 20, 2024.
The Equity Shares to be offered are intended to be listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE). For the purposes of the offer, NSE has been designated as the main Stock Exchange. Equirus Capital Private Limited and IIFL Securities Limited are appointed as the Book Running Lead Managers (BRLMs) for the offer.
“The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”), read with Regulation 31 of the SEBI ICDR Regulations,”
“The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations, through the Book Building Process wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (such portion referred to as “QIB Portion”),”
Provided that the Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations, “(the “Anchor Investor Portion”), out of which one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors.”
Other details
In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion excluding the Anchor Investor Portion, forming the Net QIB Portion.
Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. Any remainder of the Net QIB Portion shall be available for allocation to all QIB Bidders including Mutual Funds, subject to valid Bids being received at or above the Offer Price.
“However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to all QIBs.”
Additionally, no less than 15% of the Offer will be allocated on a proportionate basis to Non-Institutional Investors. Of this allocation, one-third is reserved for applicants with application sizes between INR 200,000 and INR 1,000,000, while the remaining two-thirds are allocated to applicants with application sizes of more than INR 1,000,000. If there is any unsubscribed portion in either sub-category, it may be allocated to applicants in the other sub-category.
No less than 35% of the Offer shall be available for allocation to Retail Individual Investors. Allocation will follow the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.
Potential bidders, except Anchor Investors, must mandatorily use the Application Supported by Blocked Amount (ASBA) process. This involves providing details of their ASBA accounts and UPI ID if applicable, where corresponding Bid Amounts will be blocked by the SCSBs or by the Sponsor Bank(s) under the UPI Mechanism. Anchor Investors are not allowed to participate in the Offer through the ASBA process.
“ECOS (India) Mobility & Hospitality is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the RHP with the RoC. The RHP is available on the website of SEBI at www.sebi.gov.in, the website of the Company at www.ecosmobility.com, the websites of the Stock Exchanges i.e., NSE and BSE at www.nseindia.com and www.bseindia.com, respectively, and the websites of the BRLMs, i.e., Equirus Capital Private Limited, IIFL Securities Limited, respectively.”
It is important to note the high degree of risk involved in investing in equity shares. Potential bidders should refer to the section titled “Risk Factors” on page 24 of the RHP for detailed risk information.
“This announcement does not constitute an offer of the Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration.”
Any public offering in the United States will be made through a prospectus containing detailed information about the Company, its management, and financial statements. However, the Equity Shares are not being offered or sold in the United States.
All the capitalized terms used herein but not defined shall have the same meanings as ascribed to them in the RHP.
