IPO screener: Ethos issue subscribed 27% on Day 1

K. S. Badri Narayanan | | Updated on: May 19, 2022
Image for representational purposes only

Image for representational purposes only

While retail investors quota was subscribed 0.53 times, NIIs and QIBs portions are yet to see response

The ₹437-crrore initial public offering (IPO) of luxury and premium watch retail player Ethos was subscribed 27 per cent at the end of day the first day of subscription period. The issue will close on May 20 (Friday). The price band is ₹836-878 a share and the lot size is 17 shares.

The IPO consists of a fresh issue of equity shares aggregating to ₹375 crore and an offer-for-sale (OFS) of up to 11.08 lakh shares (worth about ₹97 crore).

While retail investors quota was subscribed 0.53 times, NIIs and QIBs portions are yet to see response.

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Selling shareholders

As a part of the OFS, Yashovardhan Saboo, KDDL, Mahen Distribution, Saboo Ventures LLP, Anuradha Saboo, Jai Vardhan Saboo, VBL Innovations, Anil Khanna, Nagarajan Subramanian, C Raja Sekhar, Karan Singh Bhandari, Harsh Vardhan Bhuwalka, Anand Vardhan Bhuwalka, Shalini Bhuwalka and Manju Bhuwalka will sell equity shares.

Anchor investors

Ahead of the issue on Tuesday, Ethos raised around ₹142 crore from anchor investors. The company has decided to allot 16.13 lakh shares to 9 anchor investors at ₹878 apiece, aggregating the transaction size to ₹141.68 crore, according to a circular uploaded on BSE website.

ICICI Prudential Mutual Fund, Jupiter India Fund, Saint Capital Fund, Coeus Global Opportunities, Alchemy Leaders of Tomorrow, UPS Group Trust and Nomura Singapore are among the anchor investors.

Utility of funds

Proceeds from the fresh issuance will be utilised for repayment of debt, funding working capital requirements, opening new stores and general corporate purposes.

Ethos: Luxury retail player

Ethos is the India’s one of the largest luxury and premium watch retail player having 13 per cent share of the total retail sales in premium and luxury segment and a share of 20 per cent in the luxury segment alone in the FY20 delivering a content-led luxury retail experience to the customers through online and physical presence.

Ethos has the largest portfolio of premium and luxury watches in India and retails 50 premium and luxury watch brands like 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.

Emkay Global Financial Services and InCred Capital Wealth Portfolio Managers are the book running lead managers to the issue.

Published on May 19, 2022
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