Ethos Limited IPO

Ethos Limited IPO | Review

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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

StrengthsWeaknesses
Large luxury customer baseOperates in a competitive market
Leading luxury watch Omnichannel retail player in IndiaDon’t have definitive agreements for the supply of products
Strategically located store networkDependent on 3rd party manufacturers
Strong and long-standing relationships with luxury watch brandsVarious litigation, regulatory and other proceedings
Leader in an attractive luxury watch marketSuppliers works on a non-exclusive basis
Certified pre-owned businessSales concentrated among certain stores
Professional management teamStores and warehouses are leased

Competitors

The Tag HeuerCasioFossil
Tommy HilfigerRolexApple
Daniel WellingtonTitanCartier

Company Financials

YearRevenue (in Crore)Profit (in Crore)
31-Mar-20194,450.9698.89
31-Mar-20204,610.06-13.34
31-Mar-20214,031.4257.85
31-Dec-20214,293.48159.88

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

ApplicationLotSharesAmount
Minimum117Rs.14,926
Maximum13221Rs.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 DateMay 18-20, 2022
Allotment DateMay 25, 2022
Initiation of RefundsMay 26, 2022
Credit of share to Demat a/cMay 27, 2022
IPO Listing DateMay 30, 2022

Allotment Status

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

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About the author

Shankar Awale

Hey! I am Shankar Awale an aspiring blogger with an obsession for all things of Finance. This blog is dedicated to help people to learn about Financial Knowledge in easy language.

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