Ethos IPO Details; 10 Key Details To Know Before Subscribing

On May 18, Ethos Limited, India’s leading retailer of luxury and premium products, will begin its first public offering.

Here are 10 key things to know before subscribing to the issue:

Ethos IPO dates

The subscription period will begin on May 18 and end on May 20.

Ethos IPO Price Band

The offer’s price range has been set at Rs 836-878 per share of Rs 10 face value. The share’s floor price is 83.60 times its face value, while the cap price is 87.80 times its face value.

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Ethos IPO Offer details

The offer’s price range has been set at Rs 836-878 per share of Rs 10 face value. The share’s floor price is 83.60 times its face value, while the cap price is 87.80 times its face value.

Objectives of the Issue

The business plans to use the net proceeds from the new issuance to pre-pay or return in part or in whole the current loans it has taken out, totaling Rs 29.89 crore. A total of Rs 234.96 crore would be utilised to meet working capital needs, Rs 33.27 crore will be used to establish new shops and renovate existing ones, and Rs 1.98 crore will be used to enhance the ERP system. According to the corporation, the remaining cash would be utilised for normal corporate objectives.

The OFS part will not generate any revenue for the firm.

Ethos IPO Lot size

Investors may bid for a minimum of 17 shares and multiples of that amount. At the high end of the price range for 17 shares, the minimum investment for a regular investor is Rs 14,926. For Rs 1,94,038 a retail investor may apply for up to 13 lots, or 221 shares.

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Company profile & industry

On November 5, 2007, the firm was formed as “Kamla Retail Limited.” In the financial year 2020, it was India’s biggest luxury and premium watch retailer, with a 13 percent share of overall sales in the premium and luxury market and a 20 percent stake in the exclusive luxury segment.

Ethos Limited sells high-end and luxury timepieces online, on social media, and in physical locations. It uses an omni-channel business strategy, allowing consumers to purchase things both offline and online. They may also explore product catalogues and make purchases online for delivery to their home.

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 are among the company’s 50 luxury watch brands.

Its network consists of 50 actual retail locations in 17 cities, with 7,000 distinct quality timepieces in stock at any one moment.

Ethos also sells certified pre-owned luxury watches via its ‘Certified Pre-Owned’ luxury watch lounge in New Delhi, in addition to premium and luxury timepieces.

In FY19, luxury and high-end watch sales accounted for 46.06 percent of overall sales, 48.09 percent in FY20, 58.00 percent in FY21, and 64.41 percent in the nine months ending December 31, 2021.

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Ethos IPO Financials

Ethos recorded sales of Rs 386.57 crore in FY21, down 15.6 percent year on year from Rs 457.85 crore the previous year. The net profit for the period was Rs 5.79 crore, compared to a loss of Rs 1.33 crore the previous year. The corporation produced more revenue in the nine months ending December 2021 than it did in the whole fiscal year of FY21. During the first nine months of FY22, the firm generated sales of Rs 418.59 crore, with a net profit of Rs 15.99 crore.

In 9MFY22, its net margins were 3.82 percent, up from 1.50 percent in FY21.

Strengths and business strategy

The company’s success comes from its enormous base of high-end clients and its dominant position in the lucrative luxury watch sector. Ethos has a strategic advantage over its rivals thanks to its extensive grasp of digital and omnichannel commerce, as well as a strategically positioned and well-invested retail network with an appealing in-store experience.

Ethos has strong and long-standing partnerships with the world’s top luxury watchmakers, allowing it to provide its consumers with the world’s most prestigious luxury watch brands, according to the company’s documentation.

Promoters & key management personnel

The company’s promoters are Mahen Distribution Ltd and Yashovardhan Saboo. They own 14,790,121 equity shares, or 77.52 percent of the total issued, subscribed, and paid-up capital.

Saboo has been the company’s managing director from its inception, and Pranav Shankar Saboo is the CEO.

The chief financial officer is Ritesh Kumar Agrawal, while the corporate secretary and compliance officer is Anil Kumar.

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Grey market, allotment and listing dates

According to IPO Watch and IPO Central, both of which watch grey market movements, the company’s shares are not demanding a premium in the grey market.

Successful bidders will get their shares on May 25, while failed bids will receive their refunds on May 26. By May 27, shares will be credited to successful bidders’ demat accounts, and the stock will begin trading on the bourses on May 30.

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