Shares of Athos Started the Stock Market with Stock Listing on Monday 825 on NSE, over 6% off its IPO issue price 878 per share. Ethos shares started trading on BSE 830 each, and fell further 807 after listing within minutes.
Initial Public Offering (IPO) The luxury and premium watch retail player Ethos got fully subscribed on the last day of subscription. The share of non-institutional investors was subscribed 1.48 times, while the category of Qualified Institutional Buyers (QIBs) got subscribed 1.06 times and Retail Individual Investors (RIIs) 84 percent.
The fresh issue of equity shares in the public issue was total 375 crore and offer for sale of 11,08,037 equity shares. The price range for the offer was as follows 836-878 per share.
The proceeds from the new issue will be used for repayment of loans, financing working capital requirements, opening of new stores and for general corporate purposes.
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.
Under the Ethos brand name, it opened its first luxury retail watch store in Chandigarh in January 2003. It has 50 physical retail stores across 17 cities in India in a multi-store format, and provides its customers with an omni-channel experience through its website and social media platforms. The company’s revenue from operations was 386.5 crore for the financial year 2021, while its net profit was 5.7 crore in the same period.
“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 had said in the IPO note, “We await the continuation of the improvement in the profit metrics displayed by the company in the recent quarters.”