Comments
Ethos made a tepid debut on the bourses on Monday, listing at a discount against its issue price of ₹878. .
It listed at ₹830 on the BSE, down ₹48 or 5.47 per cent from the IPO price. The stock dropped further post listing to an intraday low of ₹774.00. It closed at ₹802.60, down ₹75.40 or 8.59 per cent from the issue price. It recorded an intraday high of ₹839.65
It listed at ₹825 on the NSE, down ₹53 or 6.04 from the issue price. It closed at ₹801.40.
Ethos is one of country’s largest luxury and premium watch retail players.
According to Santosh Meena, Head of Research, Swastika Investmart Ltd, “The company’s negative listing can be attributed to the rich pricing, current market sentiments, and lack of investor interest.”
“The company is one of the largest sellers of luxury watches in India having a loyal customer base, omnichannel distribution network, long-standing relationships with the best luxury watchmakers, and experienced promoters. However, the high valuations, lack of exclusive agreements with watchmakers, inventory heavy operations make this issue suitable only for long-term investors having a high-risk appetite,” as per Meena.
The company had fixed the initial public offering (IPO) price as ₹878, at the upper end of the price band of ₹836-878. The IPO of the Chandigarh-based company was subscribed 1.04 times.
The non-institutional investors’ portion was subscribed 1.48 times, followed by the part for qualified institutional buyers, which was subscribed 1.06 times. The portion set aside for retail investors was subscribed 0.84 times.
Ahead of the issue on Tuesday, Ethos raised around ₹142 crore from anchor investors.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.