Ethos Limited is the largest luxury and premium watch retailer in India. The company delivers premium luxury watches through websites, social media platforms and physical stores. Ethos Limited operates on an omnichannel model and allows customers to order products either offline or online and have the flexibility of buying products at one store and returning at another or browsing product catalogues and placing orders online with doorstep delivery.
The company’s watch portfolio has 50 premium brands including 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 has 50 physical retail stores in 17 cities in India including New Delhi Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Chandigarh, Ahmedabad, Jaipur, Lucknow, Gurgaon, Guwahati, Ludhiana, Nagpur, Noida, Pune and Thane. Ethos Limited has 7,000 different premium watches and 30,000 watches in stock at any given time.
As of December 31, 2021, the company’s website had 21,844,216 visitor sessions.
Competitive Strengths:
- Access to a large base of luxury Customer.
- Deep understanding of digital and Omnichannel commerce.
- Strategically located and well-invested store network with an attractive in-store experience.
- Strong and long-standing relationships with luxury watch brands and luxury groups.
- Leadership position in an attractive luxury watch market.
- Experienced and committed management team with a proven track record.
Company Financials:
| Particulars | For the year/period ended (Rs in Lakhs) | |||
|---|---|---|---|---|
| 31-Dec-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| 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 |
Objects of the Issue:
The company propose to utilise the Net Proceeds towards funding the following objects:
- Repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Company.
- Funding working capital requirements of our Company.
- Financing the capital expenditure for establishing new stores.
- Financing the renovation of certain existing stores and upgradation of enterprise resource planning software.
- General corporate purpose.
Ethos Limited IPO Details
| Ethos Limited IPO Date | May 18, 2022 to May 20, 2022 |
| Ethos Limited IPO Face Value | ₹10 per share |
| Ethos Limited IPO Price | ₹836 to ₹878 per share |
| Ethos Limited IPO Lot Size | 17 Shares |
| Issue Size | [.] shares of ₹10 (aggregating up to ₹472.29 Cr) |
| Fresh Issue | [.] shares of ₹10 (aggregating up to ₹375.00 Cr) |
| Offer for Sale | 1,108,037 shares of ₹10 (aggregating up to ₹97.29 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | 50% of the net offer |
| Retail Shares Offered | 35% of the net offer |
| NII (HNI) Shares Offered | 15% of the net offer |
| Company Promoters | Yashovardhan Saboo, KDDL Limited and Mahen Distribution Limited are the company promoters. |
Ethos Limited IPO Timeline
Ethos Limited IPO opens on May 18, 2022, and closes on May 20, 2022. The Ethos Limited IPO bid date is from May 18, 2022 10.00 A.M. to May 20, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Ethos Limited IPO Opening Date | May 18, 2022 |
| Ethos Limited IPO Closing Date | May 20, 2022 |
| Basis of Allotment | May 25, 2022 |
| Initiation of Refunds | May 26, 2022 |
| Credit of Shares to Demat | May 27, 2022 |
| Ethos Limited IPO Listing Date | May 30, 2022 |
Ethos Limited IPO Lot Size
The Ethos Limited IPO lot size is 17 shares. A retail-individual investor can apply for up to 13 lots (221 shares or ₹194,038).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 17 | ₹14,926 |
| Maximum | 13 | 221 | ₹194,038 |
Ethos Limited IPO Promoter Holding
| Pre Issue Share Holding | 81.01% |
| Post Issue Share Holding | 61.65% |
Ethos Limited IPO Review
The company has posted inconsistency in its financial performance and the super earnings for 9M-FY22 raise eyebrows as well as concern over sustainability going forward. It is asking for a higher price at the upper band against pre-IPO placement done at Rs. 826 in March 2022. Even if we arrive at the P/E based on its super earnings, the issue is highly priced at 96 plus and based on its FY21 earnings, it stands at 354. There is no harm in skipping this pricy IPO. Read detail review…
Ethos Limited IPO Recommendation by Members
Ethos Limited IPO Recommendations Details | Post Recommendation | Manage Recommendations
| Subscribe | Neutral | Avoid |
|---|---|---|
| 0 | 0 | 3 |
Ethos Limited IPO Prospectus
Company Contact Information
Ethos Limited
Plot No. 3,
Sector- III, Parwanoo,
Himachal Pradesh -173 220
Phone: + 91 1792 232 462/233 402
Email: anil.dhiman@ethoswatches.com
Website: https://www.ethoswatches.com/
Ethos Limited IPO Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: ethosltd@kfintech.com
Website: https://karisma.kfintech.com/