Ethos Limited IPO Details

Ethos Limited IPO Overview

Offer period

May 18, 2022 to May 20, 2022

Price Band

₹836 to ₹878 per share

Lot Size

17 Shares

Issue Size

₹472.29 Cr

 

Ethos Limited IPO - Company Overview

Ethos Limited is India's leading luxury and premium watch retailer. The company sells premium luxury watches online, via social media, and from physical stores. Ethos Limited relies on an omnichannel approach, allowing customers to order things either offline or online, with the option of purchasing products in one store and returning to another or browsing product catalogs and placing orders online with doorstep delivery.

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 50 top brands in the company's watch portfolio.

 

Geographical Presence

In India, the company operates 50 physical retail outlets in 17 cities, including New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Chandigarh, Ahmedabad, Jaipur, Lucknow, Gurgaon, Guwahati, Ludhiana, Nagpur, Noida, Pune, and Thane. Ethos Limited always has 7,000 different premium watches and 30,000 watches in stock at any given time.

There are 14 Ethos Summit Stores and one Airport store, 15 multi-brand outlets and 10 Ethos Boutiques, 9 luxury segment mono-brand boutiques providing a single luxury watch brand, and one CPO luxury watch lounge for pre-owned watches among the 50 stores.

 

Objective of IPO

The proceeds from the offering will be utilised as follows:

  1. Rs 29.89 crore will be utilised against repayment/ prepayment of debt.

  2. Rs 236.75 crore to meet working capital requirements

  3. Rs 33.27 crore for opening new stores and renovating existing stores.

  4. Rs 1.98 crore is utilised for upgrading enterprise resource planning (ERP) software.

  5. General corporate purpose

 

Ethos Limited - Financial Summary (Consolidated)

Particulars

For the year/period ended (Rs in Lakhs)

 

31-Dec-21

31-Mar-21

31-Mar-20

31-Mar-19

Total Assets

49,399.31

39,204.38

42,195.65

36,892.56

Total Revenue

42,934.76

40,314.23

46,100.56

44,509.63

Profit After Tax

1,598.78

578.53

-133.40

988.88

EPS

8.74

3.15

-0.75

5.22

 

Ethos Limited IPO Pros
  1. Access to a large number of luxury customers.

  2. In-depth knowledge of digital and omnichannel commerce.

  3. A well-located and well-invested store network with an appealing in-store experience.

  4. Long-standing and strong partnerships with luxury watch companies and premium groups.

  5. Holds a leading position in a lucrative luxury watch market

 

Ethos Limited IPO Cons
  1. Because the company does not have definite agreements for product supply or established terms of trade with the bulk of its suppliers, disruptions in product supply can harm the business's profitability.

  2. The business is partly dependent on the global success and reputation of third-party brands, and any negative impact on these brands or failure by Ethos or the owners of these brands to protect them, as well as other intellectual property rights and proprietary information, may have a negative impact on the business.

  3. Inability to effectively identify client demand and maintain an adequate level of inventory in stores

  4. Because it relies on watch brands to manufacture all of the products it sells, any disruptions in the manufacturing end can have an impact on the firm.

 

How to Apply for this IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your Client ID

  3. Enter the OTP received in your register mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

    You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS

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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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