Luxury & Premium Watch Retail Player Ethos Limited The Rs 472 crore Initial Public Offering (IPO) will open for subscription today and will end on Friday, May 20, 2022. The firm has fixed a price band. 836-878 per share for its three day issue.
IPO Consists of a new issue of equity shares in the aggregate 375 crore and offer for sale (OFS) of 1,108,037 equity shares. At the upper end of the price band, the public issue is expected to move up 472.3 crores. The equity shares of the company are expected to be listed on BSE and NSE on Monday, May 30, 2022.
The company said the proceeds from the new issue will be used to pay off debt, meet working capital requirements, open new stores and for general corporate purposes.
Should you subscribe to the Ethos IPO?
“Ethos is valued at ~95x P/E on an annualized FY22E basis. Going forward, continuous growth in profitable growth and improvement in return ratio can be monitored. ICICI Securities said, “We provide AVOID ratings and look forward to the continuation of improvement in the profit metrics the company has displayed in the recent quarters.”
Ethos has the largest portfolio of premium and luxury watches in India and over 50 premium and luxury watch brands such as Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bevalgari, H. Moser & Cie, Rado, Longines, Baum & Mercier, Orris SA , retails. Quorum, Carl F. Butcher, Tissot, Raymond Weil, Louis Moinet and Balmain.
“On the operational front, the company has posted inconsistent numbers. The net profit margin for FY2011 stood at 1.50%. The company has posted exceptional numbers for 9MFY22. The latest issue of PE is around 358 times, based on FY2011 figures. The issue seems to be costly. Abhay Doshi, Founder, Unlisted Arena, said, “The valuation and current market conditions may caution investors while subscribing to the issue.”