Ecos Mobility and Hospitality, P N Gadgil Jewellers get SEBI nod for IPO launch

The Securities and Exchange Board of India (SEBI), the capital markets regulator, has approved Ecos (India) Mobility and Hospitality Ltd's and P N Gadgil Jewellers Ltd's initially public offerings. The firms filed a draft red herring prospectus (DRHP) with SEBI in March 2024.

Ecos Mobility and Hospitality IPO has no fresh issue component to the IPO; instead, it solely comprises of an offer-for-sale (OFS) component with 1.8 crore equity shares. Thirty percent of the entire paid-up equity capital is the OFS.

Promoters In the OFS, Aditya Loomba and Rajesh Loomba would each be selling 81 lakh equity shares and 99 lakh equity shares. This indicates that the firm will not get any money from the offering and that the whole profits, excluding IPO expenses, will go to selling shareholders, or promoters.

For over 25 years, the firm has been offering employee transportation services (ETS) and chauffeured car rentals (CCR) to corporate clients, including Fortune 500 organisations in India. The company has a fleet of about 9,000 vehicles, ranging from economic to luxury automobiles, small vans, and luxury coaches. The vehicles are divided into many categories, including luxury cars (which include cars from automakers like Audi, BMW, and Mercedes-Benz), economy cars, premium cars, and buses/vans.

The issue's book running lead managers are IIFL Securities Limited and Equirus Capital Private Limited.

P N Gadgil Jewellers IPOconsists of a fresh issuance of equity shares with a face value of ₹10 each, up to ₹850 crore, and an offer to sell equity shares with a face value of ₹10 each, up to ₹250 crore. Equity shares with a face value of Rs. 10 apiece make up the overall offer size, which can reach up to Rs. 1,100 crore. Equity shares with a face value of Rs. 10 apiece are being offered for sale by SVG Business Trust (Promoter Selling Shareholder), with a maximum amount of ₹250 crore.

The funds acquired through the IPO is expected to be used for general corporate objectives, repayment or prepayment, in full or in part, of certain borrowings that the company has taken out, and the establishment of 12 additional shops in Maharashtra.

The issue's book running lead managers are Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd (previously known as Edelweiss Securities Limited), and BOB Capital Markets Ltd.

As of January 2024, P N Gadgil Jewellers ranked second in terms of the number of stores among major organised jewellery businesses in Maharashtra.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.