Ethos IPO opens tomorrow: GMP, financials, review. Should you apply?


Ethos IPO: The initial public offering (IPO) of Ethos Limited will open for subscription on 18th May 2022 i.e. tomorrow and it will remain open for bidding till 20th May 2022. India’s largest luxury and premium watch retailer aims to raise 472.29 crore from its public offer out of which 375 crore will be raised through fresh issues whereas 97.29 crore will be raised via offer for sale (OFS). The price band of the public issue has been fixed at 836 to 878 per equity share.

Ethos IPO: Price band

As mentioned above, price band of the public issue has been fixed at 836 to 878 per equity share.

Ethos IPO: Objective

The largest luxury and premium watch retailer aims to utilize the net proceeds of the public offer towards repayment or pre-payment of its debt, funding the working capital required for the company and financing the capital expenditure for establishing new stores.

Ethos IPO: Lot size

A bidder will be able to apply in lots and one lot will comprise 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, logging YoY decline of 15.6 per cent. Company’s tet profit for this period stood at 5.79 crore against the loss of 1.33 crore last year. For the nine months ended December 2021, Ethos Limited has generated more revenue than it achieved in entire FY202-21. India’s largest luxury and premium watch retailer company recorded a revenue of 418.59 crore from April to December 2021 period and the net profit for first 9 months of FY22 surged to 15.99 crore.

Ethos IPO: GMP today

Shares of Ethos are yet to make its debut in grey market. Hence, Ethos IPO GMP is not available.

Ethos IPO: Should you apply?

Giving Ethos IPO review, Abhay Doshi, Founder at said, “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% share in luxury segment. On the operational front, the company has posted inconsistent numbers. Net profit margin remained at 1.50% for FY21. The company as posted exceptional numbers for 9MFY22. The asking PE post fresh issue is around 358x based on FY21 numbers. The issue looks expensively priced. Valuations and current market conditions may wary the investors while subscribing for the issue.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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