Ethos Limited IPO aims to raise ₹472.29 crore from its public offer in which ₹375 crore would come through fresh issues while ₹97.29 crore would be raised via offer for sale by the promoters. Ethos Limited IPO has been offered at a price band of ₹836 to ₹878 per equity share. Ethos Ltd (Ethos) is India’s largest luxury and premium watch retailer; it had a 13% share of the total retail sales in premium and luxury segment and 20% share in exclusively luxury segment in FY19-20.
Issue Opens
Wednesday, 18th May, 2022
Issue Closes
Friday, 20th May, 2022
Issue Size (₹ Cr)
₹ 468 – 472 Cr
Issue Size (shares in ‘000)
5,593,682 – 5,379,107
Issue Details
Fresh Issue of Equity Shares aggregating upto ₹ 375 Cr
+ Offer for Sale of 1,108,037 Equity Shares
₹ 10/- Per Share
Face Value
₹ 468 – 472 Cr
Bid Lot
17 shares
Price Band
₹ 836 – 878
Issue Structure :
QIB
50% of the offer
NIB
15% of the offer
Retail
35% of the offer (1,882,688 Sharesl, ₹ 165.30 Cr)
About Ethos Limited
Ethos Limited was incorporated in 2007.
Ethos is promoted by KDDL Limited.
Ethos is India’s largest luxury and premium watch retail player having 13% share of the total retail sales in premium and luxury segment and a share of 20% when seen in exclusively luxury segment in FY 20.
It has presence across the country through a network of stores and boutiques. Its 50 stores in 17 cities.
Ethos Summit exclusively houses bridge to luxury, Luxury & High Luxury Brands, while Ethos Stores house premium & fashion range as well.
It has opened Boutiques in partnership with leading brands like Rolex.
Ethos also retails online through its website. Online purchase.
Ethos Limited IPO: Financials
Particulars / (₹ In Cr)
2021(09)
FY21
FY20
FY19
Revenue from Operations
418.59
386.57
457.85
443.53
Revenue Growth (%)
–
-15.57%
3.23%
–
EBITDA
56.29
56.44
54.4
58.26
Profit before Tax
21.62
8.1
1.99
16.48
Profit for the period
15.99
5.79
-1.33
9.89
Net Profit Margin (%)
3.82%
1.50%
-0.29%
2.23%
Equity Share Capital
18.78
18.21
18.21
16.9
EPS- Diluted (₹ )
8.74^
3.15
-0.75
5.22
RoNW (%)
8.07%^
3.72%
-0.89%
7.58%
Net Asset Value (₹ )
105.48
85.43
82.28
77.14
Post IPO Equity in cr
23.34
FV
10
IPO Price
878
EPS ( FY21)
2.48
PE FY21
353.93
EPS annaulized (9m FY22)
9.13
PE FY22 ann
96.12
Market Cap
2049
Market Cap / Sales
3.98
Ethos Limited IPO: Assessment
Ethos Limited has access to a large base of luxury Customers.
Leading luxury watch Omni-channel retail player.
Strategically located and well invested store network with attractive in-store experience;
Strong and long-standing relationships with luxury watch brands
In past there has been a downgrade in company’s credit rating.
Ethos took a Rs. 25 cr pre-IPO placement in Mar 2022 at Rs. 826 per share to Abakkus Fund.
Post-IPO, the promoters will hold about a 61.7 per cent stake in the company.
Ethos Limited was severely impacted in FY20 and FY21 by COVID.
in FY21 sales were down by 15.57% to Rs 386.57 crore yoy.
Taking into account nine months ending December 2022 and an annualized earnings, P/E works out to 96x.
There are no comparable listed companies in India.