Ethos IPO opens today with price band fixed at Rs 836-878 per equity share: Know more about other key details

Ethos IPO’s three-day initial public offering (IPO) began on May 18, 2022, and will end on May 20, 2022. (Friday). Ethos’ offering comprises of a fresh issuance of equity shares worth Rs 375 crore and an Offer-For-Sale (OFS) of up to 1,108,037 equity shares, with a target price of Rs 472.3 crore at the top end of the price band.

Retail investors bid for 53 percent of the shares set aside for them, or 10.34 lakh shares. Non-institutional investors had bid for 36,822 shares, representing 4% of the offer, while eligible institutional purchasers had yet to bid.

After the issue, the promoter holding will decline 19.36 percent and come down to 61.65 percent from 81.01 percent.

 IPO: Price Band

The offer’s price range has been set at Rs 836-878 per equity share with a face value of Rs 10 apiece.

Following the offering, the promoters’ shareholding in the firm would drop 19.36 percent to 61.65 percent, down from their existing 81.01 percent stake.

IPO: Financials

According to a report by the research firm Anand Rathi Research, the company’s sales increased by 3% in FY20 but decreased by 16% in FY21.

During FY19-21, EBITDA (earnings before interest, taxes, depreciation, and amortization) margins ranged from approximately 13% to 2%, while profit after tax margins ranged from around 10% to 0.3 percent. Revenue was Rs 420 crore in the first nine months of FY22, with an EBITDA margin of 10.9 percent.

In FY21, the return on equity (RoE) was approximately 4%, and the return on capital employed (RoCE) was around 2.4 percent, whereas in FY19, RoE/RoCE were around 8%/9%.

The firm owed Rs 31.5 crore in net debt  in FY21, which it pared to Rs 13.1 crore in the nine months of FY22.

About the Company

On November 5, 2007, the firm was formed as “Kamla Retail Limited.” In the financial year 2020, it was India’s largest luxury and premium watch retailer, with a 13 percent share of overall sales in the premium and luxury market and a 20 percent stake in the exclusive luxury segment.

Ethos Limited sells high-end and luxury timepieces online, on social media, and in physical locations. It uses an omni-channel business strategy, allowing customers to order things both offline and online. They may also explore product catalogues and place orders online for delivery to their home.

Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, and H Moser, Cie,  Carl F Bucherer, Tissot, Raymond Weil, Louis Moinet and Balmain are among the company’s 50 luxury watch brands.