The initial public offer (IPO) of ETHOS received bids for 41,38,650 shares as against 39,79,957 shares on offer, according to stock exchange data at 17:00 IST on Friday (20 May 2022). The issue was subscribed 1.04 times.

The issue opened for bidding on Wednesday (18 May 2022) and it will close on Friday (20 May 2022). The price band of the IPO is fixed at Rs 836-878 per share. An investor can bid for a minimum of 17 equity shares and in multiples thereof.

The IPO comprises fresh issue of equity shares worth upto Rs 375 crore and an offer for sale of upto 11,08,037 equity shares.

Objectives for the fresh issue include Rs 29.28 crore for repayment or prepayment of outstanding borrowings, Rs 234.96 crore for funding working capital requirements, Rs 33.27 crore for financing the establishment of new stores and renovation of the certain existing stores, Rs 1.98 crore for financing the upgradation of ERP and remaining amount will be used for general corporate purposes.

Promoters of the company are KDDL, Mahen Distribution and Yashovardhan Saboo. Promoters and promoter group holds an aggregate of 1,54,56,412 equity shares, aggregating to 81.02% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 61.65%.

Ahead of the IPO, ETHOS on Tuesday, 17 May 2022, finalized allocation of 16,13,725 equity shares to anchor investors at an allocation price of Rs 878 per share, aggregating to Rs 141.68 crore.

Ethos is India's one of the largest luxury and premium watch retail player having 13% share of the total retail sales in premium and luxury segment and a share of 20% when seen in exclusively luxury segment in the financial year 2020. It has sizeable portfolio of premium and luxury watches in India enabling it to retail 50 premium and luxury watch brands.

The company has chain of 50 physical retail stores in 17 cities in India in a multi store format. Stores are categorized into 14 Ethos Summit Stores and one Airport store that houses bridge to luxury, luxury, and high luxury brands, 14 multi-brand outlets and 10 Ethos Boutiques both housing bridge to luxury and premium brands, 10 luxury segment mono-brand boutiques offering a single luxury watch brand and 1 certified pre-owned (CPO) luxury watch lounge for pre-owned watches.

The company reported a net profit of Rs 15.98 crore and net sales of Rs 418.59 crore for the nine months ended on December 2021.

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