Ethos Limited IPO - Flattrade Kosh

Ethos Limited, a luxury watch brand retailer, plans to go public to raise Rs 472.3 crore. The price band is fixed at Rs 836-Rs 878 per equity share. The subscription for the initial public offering (IPO) will open on May 18 and end on May 20, 2022.

The IPO comprises of fresh issue of shares worth Rs 375 crore and an offer for sale (OFS) of up to 11 lakh shares aggregating to Rs 97.29 crore by shareholders and promoters. The face value is Rs 10 per equity share.

The allotment of shares will be on May 25, while initiation of refunds will be on May 26 and the shares are expected to be listed on May 30, 2022.

Company Summary

Ethos Limited is one of the largest luxury and premium watch retailer in India having 13% share of the total retail sales in premium and luxury segment and a share of 20% in exclusively luxury segment in the financial year 2020.

The company has a chain of 50 physical retail stores across 17 cities in India in a multi store format, and also offers an Omnichannel experience to their customers through its website and social media platforms.

The company delivers a content-led luxury retail experience to their customers through its online and physical presence. Ethos has 7,000 different premium watches and 30,000 watches in inventory at any point of time. In FY2020, about 36% of Ethos’s revenue came from digitally-enabled sales.

The company has a portfolio of premium and luxury watches in India enabling them to sell 50 different premium and luxury watch brands such as 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.

In addition to its premium and luxury watch retail, the company also undertakes retail of certified pre-owned luxury watches since fiscal 2019.

Company Strengths

Leading luxury watch retailer present in India through omnichannel.
Access to a large base of high net worth clients.
Strong and long-standing relationships with luxury watch brands.
Leadership position in an attractive luxury watch market.
Early mover advantage in certified pre-owned business.
Founder-led company supported by an experienced and professional management team.

Company Financials

Particulars	9MFY22	FY21	FY20	FY19
Total Assets	49,399.31	39,204.38	42,195.65	36,892.56
Revenue from operations	41,859.31	38,657.07	45,784.91	44,352.90
Profit After Tax	1,598.78	578.53	(133.4)	988.88

*All numbers are Rs in lakhs

Purpose of the IPO

The company proposes to utilise the net proceeds from fresh issue and OFS towards the following,
Repayment or pre-payment, in full or in part, of all or certain borrowings availed by the company aggregating up to Rs 29.89 crore.
Funding working capital requirements of the company totalling Rs 234.96 core.
Financing its capital expenditure requirements such as establishing new stores and renovation of certain existing stores totalling Rs 33.27 crore and upgradation of enterprise resource planning software aggregating up to Rs 1.98 crore.
Other general corporate purposes.
The company also expects to receive benefits of listing of equity shares, including to enhance visibility and brand image among their existing and potential customers.

Company Promoters

Yashovardhan Saboo, KDDL Limited and Mahen Distribution Limited are the promoters of the company.

IPO Details

IPO Opening Date	18-May-22
IPO Closing Date	20-May-22
Face Value	Rs 10 per share
IPO Issue Price (Price Band)	Rs 836 to Rs 878 per share
Issue Size	Rs 472.29 crore worth of shares
Fresh Issue	Rs 375 crore worth of shares
Offer For Sale	Rs 97.29 crore worth of shares (Up to 11.08 lakh shares)
Issue Type	Book Built Issue IPO

IPO Lot Size

Application	Lots	Shares	Amount
Minimum	1	17	Rs 14,926
Maximum	13	221	Rs 194,038

IPO Allotment and Listing Details

Event	Date
Shares Allotment Date	25-May-22
Initiation of Refunds	26-May-22
Credit of Shares to Demat	27-May-22
IPO Listing Date	30-May-22

You can check your allotment in BSE or KFin Technologies