Ethos IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 16, 2022The luxury watch boutique Ethos Watches has proposed its IPO to urge funds from the public.
The name of the company has great prominence in the Indian Market and its watches range from thousands to lakhs and are usually preferred by affluent individuals.
Here, with this article, we will be giving you insights in regards to Ethos IPO, its background, its emergence, operations, products and services, financial statements and all the information about the prospective IPO including share price, share offerings, subscription, allotment, GMP and other topics.
The Ethos IPO Review will be your guiding force to resolve whether the IPO is good or not.
| Face Value | Rs 10 |
| Price Band | Rs.836 to Rs.878 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 17 Shares |
| Listing Date | May 30, 2022 |
| Offer for Sale | Rs.97.29 crore |
| Fresh Issue | Rs.375 crore |
| IPO Size | Rs.472.29 crore |
| Tick Size | 1 |
Ethos IPO Overview
Ethos is a material subsidiary of KDDl Limited. KDDL Limited is engaged in the business of making Dials and Watch Hands for global brands.
On the other hand, Ethos happens to be one of the largest luxuries watches retail players in India.
The Ethos IPO will be a combination of a Fresh Issue and an Offer for Sale by its promoters and existing shareholders.
Ethos IPO Important Dates
| Events | Date |
| IPO Opening Date | May 18, 2022 |
| IPO Closing Date | May 20, 2022 |
| Basis of Allotment Finalization | May 25, 2022 |
| Refunds Initiation | May 26, 2022 |
| Credit of Shares to Demat Account | May 27, 2022 |
| Share Listing Date | May 30, 2022 |
On 1st December 2021, the board of Ethos Limited authorized the IPO offer and watch subsequently the same resolution was passed by the shareholders of the company on 18th January, 2022.
Post that, the company has recently filed the DRHP document with the capital markets regulator, SEBI in order to seek its approval and proceed further with the launch of IPO.
Ethos IPO Dates will be declared soon by the company after obtaining the approval for its DRHP.
Ethos IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs.836 to Rs.878 |
| Offer for Sale | Rs.97.29 crore |
| Fresh Issue | Rs.375 crore |
| IPO Size | Rs.472.29 crore |
Ethos IPO comprises of a Fresh issue aggregating to Rs. 375 crores and an Offer for Sale of up to 11,08,037 Equity Shares.
The face value of the shares offered is Rs. 10 each. The Ethos IPO Price will be determined by the Book Building Process.
As per the Draft Red Herring Prospectus, the company may also consider a private placement of equity shares before filing the Red Herring Prospectus and if such pre-placement is executed, the Ethos IPO Size offer will be altered accordingly.
Ethos IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 28 May 2022 | (Rs.5) | NA | NA |
| 27 May 2022 | (Rs.5) | NA | NA |
| 26 May 2022 | (Rs.5) | NA | NA |
| 25 May 2022 | (Rs.5) | NA | NA |
| 24 May 2022 | (Rs.5) | NA | NA |
| 23 May 2022 | (Rs.10) | NA | NA |
| 21 May 2022 | (Rs.10) | NA | NA |
| 20 May 2022 | (Rs.10) | NA | NA |
| 19 May 2022 | (Rs.10) | NA | NA |
| 18 May 2022 | (Rs.10) | NA | NA |
| 17 May 2022 | NA | NA | NA |
| 16 May 2022 | NA | NA | NA |
| 13 May 2022 | NA | NA | NA |
| 12 May 2022 | NA | NA | NA |
Ethos IPO GMP is not available right now as the IPO is yet to be launched. GMP marks a huge significance in the determination and estimation of the share listing price.
Though Grey Market is an unofficial trading channel, its impact cannot be overseen. The potential investors and market experts meticulously perceive it as a helpful tool.
Owning the distinguished features of the company, the company may expect a positive GMP towards the IPO.
Ethos IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 18th May | 0.00x | 0.04x | 0.53x | 0.27x |
| 2nd Day – 19th May | 0.19x | 0.25x | 0.68x | 0.44x |
| 3rd Day – 20th May | 1.06x | 1.48x | 0.84x | 1.04x |
| Shares Offered or Net Issue | 1,183,115 | 839,053 | 1,957,789 | 3,979,957 |
The Ethos IPO Subscription will be available once the IPO is open for bidders to place their bids for the successful allocation of shares in the company.
Subscription is a contract where the investors or bidders agrees to purchase the shares of the issuer company at a particular price.
When the bid is accepted by the company for the price proposed, the allotment of shares takes place. This whole process is undertaken according to the regulations made by the market regulators in this regard.
Allocation of shares will take place in the following manner, QIB – 50%, NII – 15% and, RII – 35%.
The Lead Managers of the issue are:
- EMKAY GLOBAL FINANCIAL SERVICES LIMITED
- INCRED CAPITAL WEALTH PORTFOLIO MANAGERS PRIVATE LIMITED
The details in respect of the price band and subscription will be made available in a short time.
Ethos IPO Allotment Status
The IPO price and its basis of allotment will be determined by the company in consultation with the BRLMs. Ethos IPO Allotment will take place after the IPO is launched publicly.
Emkay Global Financial Services Limited and Incred Capital Wealth Portfolio Managers Private Limited are the Book Running Lead Managers for the issue.
Kfin Technologies Private Limited is the Registrar of the issue.
Ethos IPO Live Performance
Searching for the Ethos IPO Live Performance, here you can find all the details regarding the Ethos IPO Price. Just click on the given below link and get your hands on all the latest information.
Subscribe to Ethos IPO – Open Free Demat Account Now!
Latest Ethos IPO News
The IPO window of the luxury watch retailer Ethos Limited is ready to outset today. The three-day IPO will remain open till May 20th.
The IPO is being launched to mop up funds of up to Rs. 472 crore from the public and comprises fresh issue alongside offers for sale.
The company’s portfolio includes over 50 luxury and premium watches. It has captured a significant market share of 20% in the exclusive luxury watch segment and caters through online and offline modes.
Ethos – Company Review
Founded as Kamla Retail Limited in the year 2007, Ethos Limited is one of the largest suppliers of luxury watches. Ethos Limited is a subsidiary of KDDL limited.
The retail supplier has as many as 50 branches spread across 17 cities in India and serves prominently its customers.
Ethos Limited offers a smooth omnichannel experience to the customers via its website and other social media platforms. The first placement of its watch store was done in 2003 at Chandigarh promoted by KDDL Ltd.
The company has gained tremendous growth and attention from all. It is one of the preferred entities in the luxury watch industry with a favorable and strong market share of about 20% in the luxury watch retail segment.
Products or Services
Under one roof Ethoswatch Limited shadows over 60 brands giving it the advantage of having the largest portfolio of premium and luxury watches in India.
With the capacity of 50 physical watch stores and position on-point online supplies, Ethos Limited has attained a distinct position.
The company offers watches under 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.
Promoters and Holding
The Promoter of Ethos Limited are:
- Yashovardhan Saboo
- Kddl Limited
- Mahen Distribution Limited.
The management of the company comprises of:
- Yashovardhan Saboo holds the position of Managing Director
- Manoj Gupta holds the position of Executive Director
- Patrik Paul Hoffman holds the position of Non-Independent Director
- Pranav Shankar Saboo holds the position of Chief Executive Officer
- Ritesh Kumar Agrawal holds the position of Chief Financial Officer
- Anil Kumar holds the position of Company Secretary and Compliance Officer
Is Ethos good for Investment?
Ethos Limited, in operations since 2007 is a designated retail supplier of various Swiss watch brands including Rolex, Omega, Tag Heuer and many more.
The company operates from Himachal Pradesh and has its branches in 17 cities of India. Now, the company is approaching the general public to urge funds of about Rs. 500 crores through an Initial Public Offering.
The IPO is a combination of a fresh issue of equity shares aggregating to Rs. 400 crore and an Offer for Sale of up to 1,108,037 equity shares offered by its promoters and shareholders.
The selling shareholders with the quantum of shares offered are:
- Up to 2,75,000 Equity Shares by Yashovardhan Saboo
- Up to 5,00,000 Equity Shares by KDDL Limited
- Up to 50,000 Equity Shares by Mahen Distribution Limited
- Up to 1,50,000 Equity Shares by Saboo Ventures LLP
- Up to 60,000 Equity Shares by Anuradha Saboo
- Up to 15,000 Equity Shares by Jai Vardhan Saboo
- Up to 10,500 Equity Shares by VBL Innovations Private Limited
- Up to 6,250 Equity Shares by Anil Khanna
- Up to 19,231 Equity Shares by Nagarajan Subramanian
- Up to 10,556 Equity Shares by C. Raja Sekhar
- Up to 3,000 Equity Shares by Karan Singh Bhandari
- Up to 2,125 Equity Shares by Harsh Vardhan Bhuwalka
- Up to 2,125 Equity Shares by Anand Vardhan Bhuwalka
- Up to 2,125 Equity Shares by Shalini Bhuwalka
- Up to 2,125 Equity Shares by Manju Bhuwalka.
Ethos Financial Statements
| Amount (in INR & Lakhs) | ||||
| 31-Dec-21 | 31-Mar-21 | Mar-20 | 31-Mar-19 | |
| Assets | 49,399.31 | 39,204.38 | 42,195.65 | 36,892.56 |
| Revenue | 42,934.76 | 40,314.23 | 46,100.56 | 44,509.63 |
| Expense | 40,770.97 | 39,518.00 | 45,868.56 | 42,861.84 |
| Profit After Tax | 1,598.78 | 578.53 | (133.40) | 988.88 |
For the financial year ending March 2021, Ethos Limited’s total revenue stood at Rs 386.57 crore and the net profit for the same year was Rs 5.78 crore.
The DRHP also included the half-yearly financial statements ended September 2021, in which revenue from operations was Rs 223.31 crore and net profit was Rs 3.75 crore respectively.
Also, the total revenue for the year 2019 and 2020 were Rs. 445.10 crore and Rs. 461.01.
| Earnings per Equity Share (in Lakhs) | ||||
| 31-Dec-21 | 31-Mar-21 | Mar-20 | 31-Mar-19 | |
| Basic & Diluted | 8.74 | 3.18 | (0.75) | 5.22 |
From a negative EPS of Rs. (0.75) in 2020, the company has progressed to a positive Rs. 5.22 EPS. The Ethos IPO will help the company progress more aggressively.
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.
Ethos IPO Details
Here are few more details you need to know before investing in Ethos IPO –
Ethos IPO Issue Object
Ethos has proposed diverse objectives for making the IPO offer and some of the objectives are:
- 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; and
- Financing the capital expenditure for (i) establishing new stores and renovation of certain existing stores and
(ii) up-gradation of enterprise resource planning software - General corporate purpose
Ethos IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Largest luxury watch Omnichannel retail player of India;
- We are the preferred destination for luxury and high luxury watches in India
- Access to large luxury customer base;
- Strategically located stores;
- Strong and long-standing relationships with luxury watch brands and;
- 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
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 3.18 | 3.72 | 85.43 |
| 31-Mar-20 | (0.75) | (0.89) | – |
| Mar-19 | 5.22 | 7.58 | – |
Ethos IPO Lead Managers
Here is the list of Lead managers –
- EMKAY GLOBAL FINANCIAL SERVICES LIMITED
- INCRED CAPITAL WEALTH PORTFOLIO MANAGERS PRIVATE LIMITED
Ethos IPO Registrar to offer
Check out the details of registrar to here –
KFIN TECHNOLOGIES PRIVATE LIMITED
Selenium, Tower B, Plot No- 31 and 32, Financial District,
Nanakramguda, Serilingampally,
Hyderabad, Rangareedi 500 032, Telangana
Tel: +91 40 6716 2222/ 180034 54001
E-mail: ethosltd@kfintech.com
Investor grievance e-mail: einward.ris@kfintech.com
Website: www.kfintech.com
Contact person: M Murali Krishna
SEBI Registration No.: INR000000221
Ethos IPO – Other Details
- Statutory Auditor – S.R. Batliboi & Co. LLP, Chartered Accountants
- Legal Counsel to the Company – Link Legal
- Bankers to the Company – IDBI Bank and HDFC Bank Limited
Ethos IPO Verdict by Stock Brokers
Views in regards to Ethos IPO are disparate. The reviews are based on independent factors and have their bearings. Ethos Limited offers luxury products whose clientele is comparatively narrow.
The company’s growth over the years is undoubtedly commendable and has achieved huge success so far.
Ethos IPO – Conclusion
The Luxury and Premium Watch supplier entity Ethos Limited is a striving progressive company. The products by the company are of premium quality and their range is usually very high. The entity is a preferred entity by many.
The Rs. 500 crore issue will have a drastic impact on the operations and efficiency of the company.
The IPO can be prosperous for the investors if the company has high expansion plans because upto now the targeted audience of the company is the affluent individuals which does not form a majority in the country.
To Subscribe to Ethos IPO – Open Demat Account Now!
Ethos IPO Review FAQs
Check out the FAQs on Ethos IPO –
What is the Issue Size of Ethos IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Ethos IPO?
The price band for this particular IPO ranges between Rs.836 to Rs.878. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the Ethos IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on May 18, 2022, while the closing date is set at May 20, 2022.
What is the Ethos IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on May 25, 2022, refund initiation is on May 26, 2022, credit of shares is on May 27, 2022, and share listing date is on May 30, 2022.
What is the Ethos IPO Listing Date?
Shares of this company shall be listed in the exchanges May 30, 2022. The date, when the listing would be done, is stagnant on May 30, 2022.
Who is the Registrar of Ethos IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFIN TECHNOLOGIES PRIVATE LIMITED. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Ethos IPO?
Here are the promoters of this IPO – YASHOVARDHAN SABOO; KDDL LIMITED AND MAHEN DISTRIBUTION LIMITED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Ethos IPO?
They have obtained the GMP of this IPO and it is (Rs.5). Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Ethos IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Ethos Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2021 in Lakhs is 578.53, 2020 is (133.40), 2019 is 988.88. PAT from Dec 2021 is 1,598.78.
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