Ethos is India’s largest luxury and premium watch retail player. In addition to its chain of 50 physical retail stores in 17 cities in India in a multi store format, the company offers an Omnichannel experience to customers through its website and social media platforms. Ethos has the largest portfolio of premium and luxury watches in India enabling it to retail 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.
As of 31 December 2021, the company has an extensive network of 50 retail stores spread across 17 cities of New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Chandigarh, Ahmedabad, Jaipur, Lucknow, Gurgaon, Guwahati, Ludhiana, Nagpur, Noida, Pune and Thane in India. These 50 stores are categorised into 14 Ethos Summit Stores and one Airport store, 15 multi-brand outlets and 10 Ethos Boutiques, 9 luxury segment mono-brand boutiques offering a single luxury watch brand, and 1 CPO luxury watch lounge for pre-owned watches.
As its offline and online channels are integrated, customers can place orders for products either offline or online and have the flexibility of buying products at one store and returning at another or browsing its product catalogues and placing orders online with doorstep delivery.
As of 31 December 2021, the company’s website had 21,844,216 visitor sessions.
Competitive Strengths
- Access to a large base of luxury Customer.
- Deep understanding of digital and Omnichannel commerce.
- Strategically located and well-invested store network with an attractive in-store experience.
- Strong and long-standing relationships with luxury watch brands and luxury groups.
- Leadership position in an attractive luxury watch market.
- Experienced and committed management team with a proven track record.
Ethos IPO Review
Ethos IPO has been proposed with an objective to repay the debts availed by the company in respect of its operations. In addition, the IPO will help the company to fulfill its working capital requirements.
Also, from growth aspects, the company will be employing a part of the proceeds towards expanding their reach and opening new branches at different localities. Other object of the company to be achieved with the IPO is to upgrade its Enterprise Resource Planning (ERP) software.
After the IPO, the company will also undertake renovation and upgradation of some of its existing stores.
Before floating the fresh issue and offer for sale IPO offer, Ethos Limited may consider a private placement of Rs 50 crore and in case such placement is completed, the fresh issue size will be reduced up to such sum.
Company Promoters
- Yashovardhan Saboo
- Kddl Limited
- Mahen Distribution Limited.
Company Financials
| Particulars | For the year/period ended (Rs in Lakhs) | |||
|---|---|---|---|---|
| 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 41,624.88 | 39,204.38 | 42,195.65 | 36,892.56 |
| Total Revenue | 23,086.00 | 40,314.23 | 46,100.56 | 44,509.63 |
| Profit After Tax | 375.41 | 578.53 | -133.40 | 988.88 |
Object Of The Issue
- Repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Company.
- Funding working capital requirements of our Company.
- Financing the capital expenditure for establishing new stores.
- Financing the renovation of certain existing stores and upgradation of enterprise resource planning software.
- General corporate purpose.
Ethos IPO Strengths
- Access to a large base of luxury Customers.
- Deep understanding of digital and Omnichannel commerce.
- Strategically located and well invested store network with attractive in-store experience.
- Strong and long-standing relationships with luxury watch brands and luxury group.
- Leadership position in an attractive luxury watch market.
Ethos IPO Risks
- The company does not have definitive agreements for supply of products or fixed terms of trade with majority of its suppliers, hence disruption in supply of products can affect the profitability of the business.
- The business partly depends on the success and reputation of the third-party brands globally, and any negative impact on these brands, or a failure by Ethos or owners of these brands to protect them, as well as other intellectual property rights and proprietary information, may adversely affect the business.
- Inability to identify customer demand accurately and maintain an optimal level of inventory in the stores.
- Dependent on watch brands for the manufacturing of all the products it sells, hence, any disruptions in manufacturing end can affect the business.
- The company is subject to various litigation, regulatory and other proceedings and same are pending at various level of adjudication.
Ethos IPO – Details
| IPO Opening Date | 18 May 2022 |
| IPO Closing Date | 20 May 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹542.79 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹836 – ₹878 |
| Market Lot | 17 Shares ( 1 Lot ) |
| Min Order | 17 Shares |
| Listing At | BSE, NSE |
| Register | KFin Technologies Limited |
| QIB Shares Offered | 50% of the net offer |
| Retail Shares Offered | 35% of the net offer |
| NII (HNI) Shares Offered | 15% of the net offer |
Ethos IPO – Date Schedule
| IPO Open Date | 18 May 2022 |
| IPO Close Date | 20 May 2022 |
| Basis of Allotment Date | 25 May 2022 |
| Initiation of Refunds | 26 May 2022 |
| Credit of Shares to Demat Account | 27 May 2022 |
| IPO Listing Date | 30 May 2022 |
Ethos IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 17 | 14,926 |
| Maximum | 13 | 221 | 1,94,038 |
Promoter Holding
| Pre Issue Share Holding | 81.01% |
| Post Issue Share Holding | 61.65% |
Ethos IPO Prospectus
Company Contact Information
| Ethos Limited Plot No. 3, Sector- III, Parwanoo, Himachal Pradesh -173 220 Phone: + 91 1792 232 462/233 402 Email: anil.dhiman@ethoswatches.com Website: https://www.ethoswatches.com/ |
Ethos IPO Registrar
| KFin Technologies Limited Phone: 04067162222, 04079611000 Email: ethosltd@kfintech.com Website: https://karisma.kfintech.com/ |
Ethos IPO Lead Manager(s)
| 1. Emkay Global Financial Services Ltd 2. InCred Capital Financial Services Pvt Ltd |
Ethos IPO FAQs
| When Ethos IPO will open? The Ethos IPO dates are 18 May 2022 To 20 May 2022. |
| What is the lot size of Ethos IPO? Ethos IPO lot size is 17 Shares and total amount is ₹14,926. |
| How to apply for Ethos IPO? You can apply in Ethos IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is Ethos IPO listing date? The Ethos IPO listing date is announced. The date of Ethos IPO listing is [30 May 2022]. |
