Ethos Limited IPO | Review

Ethos Limited IPO has come up with an initial public offer (IPO). It will open on May 18-20, 2022 at Rs.836-878 a share. The IPO issue size is around Rs.472.29 crore. The minimum bid will be for 17 shares and in its multiples thereafter.

Overview

Ethos Limited was incorporated on November 5, 2007. It is India’s one of the largest luxury and premium watch retail player. It has a 13% share of the total retail sales in the premium and luxury segments and a share of 20% in the luxury segment. Besides, the company provides a luxury retail experience to customers through online and physical presence also social media platforms. It has a chain of 50 physical retail stores in 17 cities in India. Furthermore, Ethos has a sizeable portfolio of premium and luxury watches in India enabling it to retail 50 premium and luxury watch brands like Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, Carl F. Bucherer, Tissot, Raymond Weil, Louis Moinet and Balmain.  

Ethos is India’s largest website for premium and luxury watches in terms of the number of brands and watches offered. Customers can choose from over 7,000 premium, bridge to luxury, luxury, and high luxury watches across 50 brands. Also, the company has an extensive network of 50 retail stores spread across 17 cities of Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, UT of Chandigarh; Ahmedabad, Jaipur, Lucknow, Gurgaon, Guwahati, Ludhiana, Nagpur, Noida, Pune and Thane in India.
Website –  www.ethoswatches.com

Promoters

KDDL Limited – 63.53%	Yashovardhan Saboo – 1.98%
Mahen Distribution Limited -12.02%

Promoter Holding

Pre-Issue Shareholding – 81.01%

Post-Issue Shareholding – 61.65%

Strength & Weakness

Strengths	Weaknesses
Large luxury customer base	Operates in a competitive market
Leading luxury watch Omnichannel retail player in India	Don’t have definitive agreements for the supply of products
Strategically located store network	Dependent on 3rd party manufacturers
Strong and long-standing relationships with luxury watch brands	Various litigation, regulatory and other proceedings
Leader in an attractive luxury watch market	Suppliers works on a non-exclusive basis
Certified pre-owned business	Sales concentrated among certain stores
Professional management team	Stores and warehouses are leased

Competitors

The Tag Heuer	Casio	Fossil
Tommy Hilfiger	Rolex	Apple
Daniel Wellington	Titan	Cartier

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2019	4,450.96	98.89
31-Mar-2020	4,610.06	-13.34
31-Mar-2021	4,031.42	57.85
31-Dec-2021	4,293.48	159.88

Object of Issue

1) Repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Company

2) Funding working capital requirements of our Company.

3) Financing the capital expenditure for (i) establishing new stores and renovation of certain existing stores and (ii) up-gradation of enterprise resource planning software

4) General corporate purposes.

Ethos Limited IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	17	Rs.14,926
Maximum	13	221	Rs.1,94,038

Ethos Limited IPO Details

IPO Opening Date	May 18, 2022
IPO Closing Date	May 20, 2022
Face Value	Rs.10 per Equity Share
IPO Price	Rs.836-878 per share
Market Lot	17 shares
Minimum Order Quantity	17 shares
Listing At	NSE, BSE
No. of shares offered (OFS)	11,08,037 shares
Issue Size	Up to Rs.472.29 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Ethos Limited IPO Timetable

IPO Date	May 18-20, 2022
Allotment Date	May 25, 2022
Initiation of Refunds	May 26, 2022
Credit of share to Demat a/c	May 27, 2022
IPO Listing Date	May 30, 2022

Allotment Status

KFinech – https://kosmic.kfintech.com/ipostatus/

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