Ethos IPO

Ethos Limited is a India’s biggest elegant and elite watch retailer, providing clients with a content-driven luxury retail encounter both online and in person. Ethos IPO will hit the stock market in 18 May 2022.

About Ethos

They provide an Omnichannel encounter to their clients via their website and social media channels, in combination to their 50 physical retail outlets in 17 cities across India in a multi-store concept.

They have the biggest investments of premium and elegance watch brands in India, allowing them to sell 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, among others.

In India, they have a 20 percent market share in the prestige watch retail segment and a 13 percent market share in the premium and luxury watch retail segment (Source: Technopak Report).

Omnichannel

Their Omnichannel strategy is based on their goal of providing consumers with the best possible experience, content, customisation, and convenience. In terms of the quantity of brands and watches sold, their website “www.ethoswatches.com” is India’s biggest portal for premium and luxury watches.

Watches are classified into price categories consisting of high luxury (10 lakhs and above per watch), luxury watch section (2.5 lakhs -10 lakhs per watch), bridge to luxury (1 lakh – 2.5 lakhs per watch), premium section (0.25% lakhs -1 lakh per watch), and fashion and mass section (up to 0.25 lakhs per watch) in their sector (Source: Technopak Report).

Users to their website can find all the latest watch releases, read reviews, and choose from over 50 brands.

Customers

Customers can purchase online or touch and feel their shortlisted timepieces in the comfort of their own homes or at one of their 50 locations.

Clients can place orders for their items either offline or online, and have the freedom of buying things in one store and coming to another, or exploring their product catalogues and making orders online with doorstep delivery.

They are able to serve customers in locations where they do not have a physical presence by using their website. They feel that by using an Omnichannel approach, they will be able to attract more customers, increase their reach, and provide a better watch-buying experience for its clients.

Ethos IPO

Ethos Limited, headquartered in Himachal Pradesh has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 400 crore & 11,08,037 Equity Shares on 21 January 2022.

The offer includes a fresh issue of INR 400 crore and there is offer for sale (OFS) of 11,08,037 Equity crore value equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 50 crore in this issue.

They are now got the approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	416.25	392.04	421.96	368.93
Total Revenue	230.86	403.14	461.01	445.10
Profit After Tax	3.75	5.78	(1.33)	9.89

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	5.22	5.22	3
Financial Year 2020	(0.75)	(0.75)	2
Financial Year 2019	3.18	3.15	1
Weighted Average	2.21	2.20
30 Sep. 2021	2.06	2.06

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel the following are among the qualitative aspects that go into determining the Offer Price:

1. India’s biggest premium watch Omnichannel retailer.
2. In India, they are the chosen location for luxury and high-end timepieces.
3. Access to a huge number of high-end customers.
4. Stores that are strategically placed.
5. Partnerships with luxury watch brands that are strong and long-standing.
6. Position of leadership in a lucrative luxury watch sector.
7. In the certified pre-owned sector, being the first to market gives you an advantage.
8. A seasoned management team backs up the founder-led company.

Ethos Peer Comparison

There are no publicly traded firms in India that operate in a related industry to theirs. As a result, providing an industry comparison in regard to their Business is not possible.

Ethos IPO Details

IPO Opening Date	18 May 2022
IPO Closing Date	20 May 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	836 to 878 per equity share
Market Lot	17
Min Amount	–
Listing At	BSE, NSE
Issue Size	14926
Fresh Issue	400 Crore
Offer for Sale	11,08,037 equity share

Ethos IPO Date

Ethos Limited IPO opening date is 18 May 2022, and the closing date is 20 May 2022. The Ethos issue may list in 30 May 2022.

IPO Opening Date	18 May 2022
IPO Closing Date	20 May 2022
Basis of Allotment Date	25 May 2022
Initiation of Refunds	26 May 2022
Credit of Shares to Demat Account	27 May 2022
IPO Listing Date	30 May 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Ethos Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Ethos Limited IPO.

Ethos IPO GMP

Ethos Limited IPO Grey Market Premium is 2. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
May 2022
May 2022
May 2022
May 2022
May 2022
25 May 2022	2	0	0
24 May 2022	3	0	0
23 May 2022	4	0	0
22 May 2022	2	0	0
21 May 2022	7	0	0
20 May 2022	4	0	0
19 May 2022	0	0	0

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Ethos Limited IPO Review

Ethos Limited IPO Review : If you are looking for advise regarding Ethos IPO is good or bad then please avoid this IPO.

Ethos Limited IPO Risk

1.  Covid-19, or any future pandemic, as well as any public health or other disaster, could have a negative impact on their business.
2. The bulk of their suppliers do not have definite agreements for product supply or established terms of commerce.
3. Its company is dependent in part on the global performance and reputation of their third-party brands.
4. For the production of all of the things they sell, they rely on watch brands.
5. Their inability to effectively assess client demand and maintain an ideal level of inventory in their stores may have a negative influence on their operations.
6. They have been involved in a number of legal, regulatory, and other processes, all of which are currently continuing at various levels of adjudication.

Other Threats

1. Their inability to safeguard their intellectual property rights may have a negative impact on their company.
2. The rise of internet merchants may put pressure on prices, increase competition, and harm their business.
3. Their inability to provide a consistently high-quality client encounter across all of their sales channels could hurt their business.
4. Their credit rating has previously been lowered. Any further credit rating downgrades may make it harder for them to obtain financing for their needs.
5. In fiscal year 2020, they lost money. Their business may be negatively impacted if they incur a net loss in the future.
6. Due to pilferage, loss, and fraud, their firm is vulnerable to product shortages.

Certified Pre-Owned

They also sell certified pre-owned luxury watches through their ‘Certified Pre-Owned’ (“CPO”) luxury watch lounge in New Delhi, in addition to premium and luxury brands.

In Fiscal 2019, they launched their pre-owned luxury watch retail business. CPO is a place where you can sell and purchase pre-owned luxury timepieces under the supervision of a technical expert who does a 360-degree physical inspection and verification of the watches and certifies them with a two-year warranty.

They feel that after evaluating the worth of a watch over time, the market for previously owned or “pre-owned” watches has become the greatest location to buy and give liquidity to watch owners who wish to trade in their watch for a new one.

Stores

New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Chandigarh, Ahmedabad, Jaipur, Lucknow, Gurgaon, Guwahati, Ludhiana, Nagpur, Noida, and Thane are among the 17 cities in India where they have a network of 50 (fifty) retail locations.

14 Ethos Summit Stores and one Airport shop, 15 multi-brand outlets and 10 Ethos Boutiques both housing bridge to expensive and luxurious brands, 9 luxury sector mono-brand boutiques selling a single luxury watch brand, and 1 CPO luxury watch lounge for pre-owned watches are among their 50 locations.

Their diverse retail formats cater to a wide range of market groups, including luxury and high-end, exclusive boutiques, and airport boutiques. Ethos Summit locations are their flagship and huge stores, providing clients with a considerably superior experience.

Ethos Limited IPO Brokerage views

Here is the views of different stock brokers regarding this IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Ethos Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
18  May 2022	1
19 May 2022	2
20 May 2022	3

Management

Its first luxury retail watch store, under the brand name “ETHOS,” established in Chandigarh in January 2003 by their Promoter, KDDL Limited, a firm listed on the BSE and NSE.

In order to consolidate the business of premium watch retail under one umbrella for good management and focused approach, their Promoter’s retail operation was hived off into their Firm in 2008 under the name and style of Kamla Retail Limited, and their Company was rebranded as Ethos Limited in 2012.

Their Promoter’s watch business experience has aided them in developing solid partnerships with worldwide watch brands and subsequently strengthening their business.

Promoters

• KDDL Limited
• Mahen Distribution Limited
• Yashovardhan Saboo

Promoter’s Holding

Pre Issue Share Holding	78.77%
Post Issue Share Holding

Ethos Prospectus