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Yeh IPO kya kahta hai? ETHOS LIMITED

All that you should know about the Company before applying for the IPO.

May 16, 2022     

The public issue of equity shares of Ethos Limited will open for subscription on May 18, 2022 and closes on May 20, 2022. It is expected to list on the stock exchanges on May 30, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Established in 2007, promoted by KDDL Limited, it is India’s one of the largest luxury and premium watch retail player. The Company retails 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. It has 13% share of the total retail sales in premium and luxury segment and a share of 20% when seen in exclusively luxury segment in the FY 2020. The Company works on a nonexclusive basis with most of its suppliers.

In addition to watch retail, the Company also undertakes retail of certified pre-owned luxury watches under ‘Certified Pre-Owned’ (CPO) luxury watch lounge located at National Capital Territory of New Delhi. CPO is a destination for selling and buying preowned luxury watches under technical expert supervision providing a 360-degree physical inspection and verification of watches and certified with a 2-year warranty.

It has chain of 50 physical retail stores spread across 17 cities in India in a multi store format. The Company also offers an Omnichannel experience to its customers through its website and social media platforms. Its website www.ethoswatches.com is India’s largest website for premium and luxury watches in terms in number of brands and watches offered. As of the calendar year ending 31-DEC-2021, its website had 2,18,44,216 number of visitor sessions. On its website, visitors are assigned highly trained watch consultants, who help the customers to choose from the wide array of choices available.

Watches are categorized on the basis of price segments – High luxury segment (₹ 10 lakhs and above per watch), Luxury watch segment (₹ 2.5 lakhs - ₹ 10 lakhs per watch), Bridge to Luxury segment (₹ 1 lakh - ₹ 2.5 lakhs per watch), Premium segment (₹ 25 thousand -1 lakh per watch) and Fashion and Mass segment (up to ₹ 25 thousand per watch).

Who are the Promoters of the Company?

Yashovarshan Saboo, KDDL Limited, Mahen Distribution Limited

Positives about the Company

  • Leading luxury watch Omnichannel retail player of India
  • Access to a large base of luxury Customers
  • Strong and long-standing relationships with luxury watch brands and luxury group
  • Leadership position in an attractive luxury watch market
  • Early mover advantage in certified pre-owned business
  • Founder-led company supported by a professional management team

Who are its key competitors?

There are no listed peers in India

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Company
  • Funding working capital requirements
  • Financing the capital expenditure for establishing new stores and renovation of certain existing stores and up-gradation of enterprise resource planning software
  • General corporate purposes

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

IPO Details

IPO Size ₹ 472.29 Crore *
Offer Mix Fresh issue ₹ 375 Crore + Offer For Sale ₹ 97.29 Crore
Price Band ₹ 836 - ₹ 878
Lot Size 17 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,926 (1 lot) | Max. ₹ 1,94,038 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar KFin Technologies Limited
Cut-off time for UPI Mandate Confirmation 23-May-2022 (up to 12:00 PM)
* at upper price band

Category Wise Availability *

QIB ₹ 236.15 Crore
(50% of Issue Size)
NIB ₹ 70.84 Crore
(15% of Issue Size)
Retail ₹ 165.30 Crore
(35% of Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens May 18, 2022
IPO Closes May 20, 2022
Finalization of the basis of allotment May 25, 2022
Unblocking of funds / Initiation of refunds May 26, 2022
Credit of equity shares to Demat accounts May 27, 2022
Listing of equity shares May 30, 2022
Source: Company RHP
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