ECOS Mobility shares jump over 16% after decent debut. What should investors do?
Shares of ECOS (India) Mobility and Hospitality surged 16.5% to Rs 456 on the BSE following a decent debut on Wednesday. The stock was listed at Rs 391.2 on the BSE, posting a 17.1% premium over the IPO price of Rs 334.
However, the listing was slightly below expectations, as the shares were trading at a grey market premium (GMP) of 48% above the issue price before the debut.
Ecos Mobility's IPO received an overwhelming response, with a subscription rate of 64 times, driven largely by non-institutional investors.
«While the listing was encouraging, investors should remain cautious due to the company's mixed financial performance,» said Shivani Nyati, Head of Wealth, Swastika Investmart.
«The IPO's valuation appeared higher, based on the P/E ratio, which might have contributed to the relatively modest listing gains 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.»
«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,» Nyati advised.
Meanwhile, Master Capital Services suggested, «Investors with a medium- to long-term perspective may consider investing in the company, particularly during market dips.»
ECOS Mobility has been providing chauffeured car rentals and employee
