Ethos IPO Listing: Company selling luxury watches disappointed investors, lost Rs 53 on one share

Ethos had a weak listing.

The IPO of Ethos opened on May 18 and closed on May 20. The issue was subscribed 1.04 times on the last day. The company raised Rs 472.3 crore from IPO.

luxury watch company Athos Limited ,Ethos Ltd) was listed on the stock market on Monday, 30 May 2022. Shares of Ethos Limited disappointed the investors. Ethos had a weak start in the stock market. Listed on NSE at 6 percent discount at Rs 825. Whereas the listing of the stock on BSE took place at Rs 830 with a discount of 5.4 percent. Its issue price was Rs 878 per share. After the listing, the fall in the stock was big and it fell to a low of Rs 792. The company’s market cap is Rs 1,856.38 crore. The investors of the company have suffered a loss of Rs 53 on one share.

The IPO consisted of a fresh offering of equity shares worth Rs 375 crore and an offer for sale (OFS) of 1,108,037 equity shares. Ethos will use the proceeds from the IPO for debt repayment, working capital requirements, opening of new stores and general corporate purposes.

Good share in luxury and premium watch retail

The company has a good market share in the luxury and premium watch retail segment in India. The company’s share in the total retail sales in the premium segment is 13 percent, while in the financial year 2020, the company had a 20 percent share in the luxury segment. The company has 50 physical retail stores across 17 cities in India in a multi-store format. It sells its products to customers through its website and social media platforms.

The share of non-institutional investors (NIIs) of Ethos IPO was subscribed 1.48 times, while the share of qualified institutional buyers (QIBs) was 1.06 times and the share of retail individual investors (RIIs) was 84 percent.

Largest Portfolio of Premium & Luxury Watches

Ethos has the largest portfolio of premium and luxury watches in India and retails over 50 premium and luxury watch brands. The company’s watch brands include 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 Huh.

In this issue, 50 per cent stake was reserved for qualified institutional investors. 35 per cent was reserved for retail investors while the remaining 15 per cent was reserved for non-institutional investors. Emkay Global Financial Services and Incred Capital Wealth Portfolio Managers were the book running lead managers of the issue.

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Shares broken more than 10 percent

After the weak listing, the decline in the shares of Athos Company has increased. The stock fell 11.37 per cent to a 52-week low of Rs 778.10 on the BSE. Currently trading at Rs 781.65 with a fall of 10.97 percent.

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