Ethos LTD IPO | Motilal Oswal
Ethos LTD IPO | Motilal Oswal

Ethos LTD IPO

Opening Date

18, May 2022

Closing Date

20, May 2022

Face Value

₹10 per equity share

IPO Price Band

₹836 to ₹878 per equity share

Minimum Order Quantity

17 Shares

Issue Size

₹472.29 Crs

 

The IPO season has once again blossomed in the Indian Stock Market. LIC - India’s biggest IPO till date was live for subscription, at last, garnering a total subscription rate of 2.95 times. Now, many companies, which have been looking forward to releasing their IPOs have declared the details, and here, we will be talking about the latest talk of the town IPO which is Ethos Ltd, going live from 18th May 2022. Let’s find some information about its operations to help you decide if this IPO is investment worthy!

About Ethos Ltd

Ethos is India’s largest luxury and premium watch retail player delivering a content-led luxury retail experience to its customers through online and physical presence. In addition to its chain of 50 physical retail stores in 17 cities in India in a multi store format, the company also offers an Omnichannel experience to its customers through the website and social media platforms. The company has the largest 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. The company enjoys a healthy market share of 20% in the luxury watch retail segment and 13% in the premium and luxury watch retail segment in India. In addition to its premium and luxury watch retail, the company also undertakes retail of certified pre-owned luxury watches from Fiscal 2019.

 

Summary of Financial Information

 

Particulars

For the year/period ended (Rs in Lakhs)

31, Dec, 2021

31, March, 2021

31, March, 2020

31, March, 2019

Total Assets

49,399.31

39,204.38

42,195.65

36,892.56

Total Revenue

42,934.76

40,314.23

46,100.56

44,509.63

Profit After Tax

1,598.78

578.53

(133.40)

988.88

 

Ethos Ltd IPO details 

Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Ethos Ltd IPO date and its share price.

Ethos Ltd IPO date 

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from 18th, May and will be available for subscription until 20, May 2022.

Ethos Ltd IPO issue size 

The total issue size of the latest Ethos LtdIPO is declared to be ₹472.29  crores. The fresh issue of shares aggregate up to ₹375 Crores. The offer for sale of shares aggregate up to ₹97.29 Crores.

50% of the offer is reserved for QIBs (Qualified Institutional Buyers), 35% for Retail Investors, and the Balance 15% for NIBs (Non-Institutional Investors).

Ethos Ltd IPO share price

The price band of the company’s upcoming IPO is declared to range between ₹836 to ₹878 per equity share

Ethos Ltd IPO listing

Since the IPO of Ethos Ltd Ltd IPO is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

Ethos Ltd IPO objectives

The net proceeds of the Fresh Issue, i.e. gross proceeds of the Fresh Issue less the offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilized in the following manner:

  • Repayment or prepayment, in full or in part, of all or certain borrowings availed by the Company;
  • Funding working capital requirements of the Company; and
  • Financing the capital expenditure for (i) establishing new stores and renovation of certain existing stores and (ii) upgradation of enterprise resource planning software
  • General corporate purpose

Ethos Ltd Key Strengths

  • Enjoys a healthy market share of 20% in the luxury watch retail segment & 13% in the premium segment as of FY20.
  • Access to a large luxury customer base of over 2,83,300.
  • Wide Omni channel presence.
  • Strong and long-standing relationships with luxury watch brands.
  • Early mover advantage in certified pre-owned business.

Ethos Ltd IPO risks

  • Absence of exclusive arrangements with the suppliers could impact pricing.
  • As of Dec 21, 32% of the revenue is contributed by the top 3 stores.
  • Increasing presence of e-tailers & e-commerce platforms in India.
  • Seasonal variations in sales volume may affect the revenue.

 

Conclusion

If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online Demat Account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you already have an existing account, you can  start your online trading and invest in the upcoming IPO's.

With a plethora of companies coming forward with their own IPOs in quick succession, you can keep a track of all the upcoming IPOs by regularly following our IPO calendar.

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