Ethos IPO: The Initial Public Offering (IPO) of Ethos Limited will open for subscription tomorrow i.e. 18th May 2022 and will be open for bidding till 20th May 2022. India’s largest luxury and premium watch retailer aims 472.29 crore from its public offer, out of which 375 crore will be raised through fresh issue while Rs 97.29 crore will be raised through Offer for Sale (OFS). The price band for the public issue has been fixed by: from 836 878 per equity share.
Ethos IPO: Price Band
As mentioned above, the price band for a public issue is fixed at: from 836 878 per equity share.
Ethos IPO: Purpose
The largest luxury and premium watch retailer aims to use the net proceeds of the public offering to finance the repayment or prepayment of its loans, financing the company’s required working capital and capital expenditures to set up new stores.
Ethos IPO: Lot Size
One bidder will be able to apply in lot and one lot will consist of 17 shares of the company.
Ethos IPO: Financials
For FY2020-21, Ethos Limited reported revenue of 386.57 crore against 457.85 crore a year ago, registering a decline of 15.6 per cent year-on-year. The company’s tet profit for the period was 5.79 crore against loss of 1.33 crore last year. For the nine months ended December 2021, Ethos Ltd. has generated more revenue than it achieved in the entire FY 202-21. India’s largest luxury and premium watch retailer registers a revenue of Rs. 418.59 crore in the period April to December 2021 and increased net profit for the first 9 months of FY22 15.99 crores.
Ethos IPO: GMP Today
Shares of Ethos have yet to make their debut in the gray market. Hence, Athos IPO GMP is not available.
Ethos IPO: Should You Apply?
Giving a review of the Ethos IPO, Abhay Doshi, Founder, UnlistedArena.com, said, “Ethos is India’s largest luxury and premium watch retail player, accounting for 13% of the total retail sales in the premium and luxury segment and 20% In the luxury segment. On the operations front, the company has posted inconsistent numbers. Net profit margin stood at 1.50% for FY2011. The company posted exceptional numbers for 9MFY22. Based on FY2011 numbers But the PE post fresh issue is around 358x. The issue looks expensive. The valuations and current market conditions may caution investors while subscribing for the issue.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.