Ethos Limited | IPO Note
Incorporated in 2007, Ethos Limited 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% in exclusively luxury segment
in FY2020. The company delivers premium luxury watches through websites,
social media platforms and physical stores. Ethos Limited operates on an
omnichannel model and allows customers to order products either offline or
online and have the flexibility of buying products at one store and returning at
another or browsing product catalogues and placing orders online with
The company's watch portfolio has 50 premium brands including 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.
The company has 50 physical retail stores in 17 cities in India including New
Delhi Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Chandigarh,
Ahmedabad, Jaipur, Lucknow, Gurgaon, Guwahati, Ludhiana, Nagpur, Noida,
Pune and Thane. Ethos Limited has 7,000 different premium watches and
30,000 watches in stock at any given time. As of December 31, 2021, the
company's website had 21,844,216 visitor sessions.
Ethos is raising ~₹97cr through OFS and ₹375cr through Fresh Issue
price band of ₹836-₹878per share.
Exhibit 1: Pre and post IPO shareholding pattern
No of shares (Pre-issue) % (Post-issue) %
Promoter 1,54,56,412 81.0% 1,43,95,912 61.7%
Public 36,21,751 19.0% 89,53,322 38.3%
Total 1,90,78,163 100.00% 2,33,49,234 100.00%
Source: Source: RHP, Note: Calculated on upper price band
Objectives of the Offer
Repayment or pre-payment, in full or in part, of all or certain borrowings
availed by the Company (~₹30cr).
Funding working capital requirements (~₹235cr).
Financing the capital expenditure for establishing new stores and
renovation of certain existing stores (~₹33cr) as well as upgradation of
enterprise resource planning software (~₹2cr).
General corporate purpose