Ethos Ltd. IPO
Ethos Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹878
Issue Price
Listing Price
₹830
Listing Price
Listing Gains
-₹48.00 (-5.47%)
Listing Gains
IPO Details
Bidding Dates
18 May - 20 May '22
Bidding Dates
Min. Investment
₹14,212
Min. Investment
Lot Size
17.00
Lot Size
Price Range
₹836 - ₹878
Price Range
Issue Size
468 Cr
Issue Size
Subscription Rate
- Retail Individual Investor0.84x
- Non-Institutional Investor1.48x
- Qualified Institutional Buyers1.06x
- Employees
About Company
Ethos Ltd is the largest luxury and premium watch retailer in India with both online and offline presence. The company operates on an omnichannel model through website and social media and has a watch portfolio of 50 premium brands. These include Omega, Jaeger LeCoultre, Panerai, IWC Schaffhausen, Rado, Longines, Baume & Mercier, Bvlgari, H. Moser & Cie, Oris SA, Corum, Tissot, Raymond Weil, Carl F. Bucherer, Louis Moinet and Balmain.
The company operates 50 physical stocks in 17 Indian cities in a multi-store format and has 7,000 different premium watches and 30,000 watches in stock at any given time. The company’s website had 21,844,216 visitor sessions, as of December 31, 2021.
Ethos Ltd IPO will open for subscription on May 18 and close on May 20. The anchor book will open on May 17. The price band for the issue has been set at Rs 836-878 per share.
Ethos IPO consists fresh issue of shares worth Rs 375 crore and an offer for sale of up to 11.08 lakh shares by shareholders and promoters. At the upper end of the price band, the total issue size will amount to Rs 472.29 crore.
The IPO lot size is 17 shares and a retail-individual investor can apply for up to 13 lots.
According to the draft red herring prospectus (DRHP), the company will utilise the proceeds from the issue to repay debt, finance capital expenditure for establishing new stores, fund working capital requirements and general corporate purposes.
Why should you invest in Ethos IPO?
Ethos Ltd has a leadership position in an attractive luxury watch market and has access to a large base of luxury customers. It has a pan-India presence and is India’s largest luxury and premium watch retail player having a 13% share of the total retail sales in the premium and luxury segment and a share of 20% when seen in the exclusive luxury segment in the financial year 2020.Financial Snapshot - Ethos Ltd IPO
Ethos Ltd has reported inconsistency in its financial performance over the last few years. In the table provided below, you can get a snapshot of Ethos in recent years.
| Financial Year | Total Assets | Total Revenues | Profit After Tax |
|---|---|---|---|
| March 2019 | Rs 368.92 crore | Rs 445.09 crore | Rs 9.89 crore |
| March 2020 | Rs 421.95 crore | Rs 461 crore | Rs -1.33 crore |
| March 2021 | Rs 392.04 crore | Rs 403.14 crore | Rs 5.79 crore |
Important Dates - Ethos Ltd IPO
| Application opens on | 18th May 2022 |
| Last date of application | 20th May 2022 |
| Date of Allotment | 25th May 2022 |
| Refund begins from | 26th May 2022 |
| Credit of shares to Demat | 27th May 2022 |
| Listing date | 30th May 2022 |
Ethos Ltd. IPO - SWOT Analysis
Strengths
Ethos Ltd has a deep understanding of digital and Omnichannel commerce. It has strong and long-standing relationships with luxury watch brands and luxury groups.
Weaknesses
The company’s business partly depends on the continued success and reputation of its third-party brands globally. Its wholly owned subsidiary, Cognition Digital LLP may incur losses in the future.
Opportunities
India has one of the youngest populations globally with a median age of 28.1 yrs. This offers unprecedented opportunities for consumer industries such as fashion, real estate, telecom, etc. The growth of organized pre-owned market for luxury watches helps to unlock the collectible market thereby increasing both the vibrancy of the market and the addressable market opportunity.
Threats
The company has been subject to various litigation, regulatory and other proceedings and the same are pending at various levels of adjudication. The growth of online retailers may create pricing pressures and increase competition. Any increase in regulatory duties payments including the customs/import duties may affect its business.
Ethos Ltd Noteworthy Highlights
Check out some of the key details and information about Ethos before investing:
- Ethos Ltd operates an Omni-channel retail platform across India and sells its products through its stores categorised as Ethos Summit Stores, multi-brand stores, Ethos Boutiques, Airport Store, CPO luxury watch lounge and mono-brand boutiques, and via online channel.
- It has strategically located and well-invested store network with an attractive in-store experience.
- The company has undertaken a pre-IPO placement of 302,663 shares at a price of Rs 826 per share, aggregating to Rs 25 crore in the month of March 2022.
- It has reserved 50% of the offer for qualified institutional buyers (QIB), around 35% for retail investors and the remaining 15% for non-institutional investors (NII) in the IPO.
- The lot size of Ethos IPO is 17 shares and a retail-individual investor can apply for up to 13 lots.
How to apply for Ethos Ltd. IPO?
You can apply for the Ethos Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Ethos Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
