This is the biggest luxury and premium watch seller in India. The comap[ny operates in an omnichannel mode. It allows customers to place orders through its website or online platform or social media or even offline. The company has its stores in 17 cities. It has an agreement to sell watches of 50 brands like Tissot, Balmain, Omega, Bvlgari etc. The company has more than 50 stores to operate its offline selling business. It has a total of 7000+ unique watches and more than 30000 watches in inventory at any given period of time.
IPO DETAILS
Ethos Limited IPO is set to launch on 17th May, 2022. The subscription timeline extends till 19th May, 2022. The size for the IPO is 1501.73 Crore Rs.. Shares issued through Offer For Sale are worth Rs. 497.73. Shares issued through Fresh Issue are worth Rs. 1004 Crore. The lot size is 350 shares and the price range is 39 Rs. – 42 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is KFin Technologies Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 18th May, 2022 |
| CLOSING DATE FOR IPO | 20th May, 2022 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 10 Rs. per share |
| IPO price band | 836 Rs. – 878 Rs. |
| LOT SIZE | 17 shares |
| MINIMUM ORDER QUANTITY | 17 shares |
| ISSUE SIZE | 472.29 Crore Rs. |
| OFFER FOR SALE | 97.29 Crore Rs. |
| FRESH ISSUE | 375.00 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 30th May, 2022 |
IMPORTANT DATES
| IPO OPENING DATE | 18th May, 2022 |
| CLOSING DATE FOR IPO | 20th May, 2022 |
| IPO ALLOTMENT DATE | 25th May, 2022 |
| REFUNDS | 26th May, 2022 |
| DEMAT A/C CREDITED ON | 27th May, 2022 |
| IPO LISTING DATE | 30th May, 2022 |
Ethos Limited IPO begins for subscription from 18th May, 2022. The IPO subscription would continue till 20th May, 2022. The allotment status for the shareholders who applied would come on 25th May, 2022. The refunds for the ones who did not get allotment would be initiated on 26th May, 2022. The DEMAT accounts of shareholders would be credited on 27th May 2022. The listing of the company would be accompanied on 30th May, 2022.
Lead Managers And Promoters
The lead managers are :
- InCred Capital Financial Services Private Limited
- Emkay Global Financial Services Limited
The minimum lot size for the company is decided at 17 shares. This holding accounts to 14926 Rs.. The maximum lot size is decided at 221 shares. This amounts to 194038 Rs.. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 17 shares | 14926 Rs |
| Maximum | 221 shares | 194038 Rs. |
OBJECTIVES FOR THE IPO
- The money in the IPO would be used for general corporate purposes.
- For meeting the production and inventory expenses. The money will also be used for further business expansion purposes.
- Renovation of retail stores and upgradation of its planning software.
COMPANY FINANCIALS
| Particularly (in Million Rs.) | Dec. 2021 | 2020-21 | 2019-20 |
| ASSETS | 49399 | 39204 | 42195 |
| Revenue | 42934 | 40314 | 46100 |
| PAT | 1599 | 579 | -133 |
The assets of the company have been in an inconsistent manner. The assets increased in 2021 Dec but the same were down by 3000 Million Rs in 2021 March. Revenue of the firm was on peak in 2020 at 46100 Million Rs. However the revenues went down by 6000 Million Rs in 2021. The current revenues stand at 42934 Million Rs even before the quarterly result for March 2022. Thus the revenues can be expected to cross 50000 Million Rs in 2022.
The biggest breakthrough for the company was its profitability. The company was reeling through a loss in 2020 at 133 Million Rs. However the company went profitable in 2021 at 579 Million Rs. The same has almost tripled at the end of Dec 2021 at 1600 Million Rs.
PROS
- Ethos Limited has more than 50 stores selling its branded watches.
- The company operates in an omnichannel manner.
- It has an agreement with more than 50 brands to sell their watches through Ethos.
- Ethos has an inventory of 30000+ watches at any given point of time.
- The company has more than 7000 unique watch options for its customers.
CONS
- Highly Competitive Market Segment.
Ethos Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Ethos Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
