Ethos Limited
Mainboard₹402 Cr issue
-5.47%
Listing gain over issue price
Issue size
₹402 Cr
1 lot at cut-off
₹14,926
Lot size
17shares
Open
18 May 2022
Close
20 May 2022
Allotment
25 May 2022
Listing
30 May 2022
Listing performance
Issue price
₹878
Listed at
₹830
Listing-day close
₹803.10
Latest price
₹2,411.40
Close on 23 Oct 2026
Listing gain
-5.47%
Return since issue
+174.65%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 May 2022 – 20 May 2022
- Listing date
- 30 May 2022
- Face value
- ₹10 per share
- Issue price
- ₹878 per share
- Lot size
- 17 shares
- Total issue size
- ₹402 Cr
- Market cap at offer price
- ₹2,050 Cr
- Promoter holding
- 81.02% → 64.88% pre-issue → post-issue
- ISIN
- INE04TZ01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Emkay Global Financial Services Ltd.
- Registered office
- Plot No.3, Sector-III, Himachal Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 16,13,725 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 17 shares per lot, in multiples, at ₹878
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 17 | ₹14,926 |
| Retail (max) | 13 | 221 | ₹1,94,038 |
| S-HNI (min) | 14 | 238 | ₹2,08,964 |
| S-HNI (max) | 66 | 1,122 | ₹9,85,116 |
| B-HNI (min) | 67 | 1,139 | ₹10,00,042 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
16,13,725
Anchor portion
₹142 Cr
at ₹878 per share
Valuation and performance
Valuation at offer price
₹878 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.18 | — |
| P/E (×) | 276.10 | — |
| Market cap | — | ₹2,050 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 3.72%
- Debt / equity
- 0.78
- NAV per share
- ₹85.43
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ethos Limited
Ethos Limited is a luxury and premium watch retail company incorporated in 2007 and headquartered in Parwanoo, Himachal Pradesh with corporate offices in Chandigarh. The company operates through a multi-store retail format with 50 physical stores in 17 Indian cities, complemented by an online presence through its website and social media platforms. The company retails approximately 50 premium and luxury watch brands including Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, and others. Since Fiscal 2019, the company has also undertaken retail of certified pre-owned luxury watches. The company generates revenue through direct sales of premium and luxury watches to customers through its physical stores and omnichannel platform.
Company Analysis
from RHPEthos Limited is India's leading luxury and premium watch retailer with 13% market share in the premium and luxury segment, operating 50 physical stores across 17 cities alongside an omnichannel platform.
Ethos Limited is a luxury and premium watch retail company incorporated in 2007 and headquartered in Parwanoo, Himachal Pradesh with corporate offices in Chandigarh. The company operates through a multi-store retail format with 50 physical stores in 17 Indian cities, complemented by an online presence through its website and social media platforms. The company retails approximately 50 premium and luxury watch brands including Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, and others. Since Fiscal 2019, the company has also undertaken retail of certified pre-owned luxury watches. The company generates revenue through direct sales of premium and luxury watches to customers through its physical stores and omnichannel platform.
Luxury retailPremium watch retailOmnichannel retail
Objects of the Issue
- Repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Company ₹ 2,989.09 lakhs p.24
- Funding working capital requirements of our Company ₹ 23,496.22 lakhs p.24
- Financing the establishment of new stores ₹ 3,327.28 lakhs p.24
- Financing the upgradation of ERP ₹ 198.01 lakhs p.24
- General Corporate Purpose ₹ 3,609.87 lakhs p.24
- Repayment of borrowings p.59
- Working capital requirements p.59
- Capital expenditure for opening new stores p.59
- Upgradation of enterprise resource planning software p.59
- Repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Company ₹2,989.09 lakhs p.129
- Funding working capital requirements of our Company ₹23,496.22 lakhs p.129
- Financing the establishment of new stores and renovation of the certain existing stores ₹3,327.28 lakhs p.129
- Financing the upgradation of ERP ₹198.01 lakhs p.129
- General corporate purpose ₹3,609.87 lakhs p.129
- Funding capex and general corporate purposes
Issue Structure
- Total Issue
- ₹ 40,226 lakhs
- Fresh Issue
- ₹ 37,500 lakhs (42,71,070 Equity Shares)
- Offer for Sale
- ₹ 2,726 lakhs (3,10,430 Equity Shares)
- Price Band
- ₹ 836 to ₹ 878 per Equity Share
- Lot Size
- 17 Equity Shares and in multiples of 17 Equity Shares thereafter
- Face Value
- ₹ 10 per Equity Share
Business Model
The company earns revenue through retail sales of premium and luxury watches from authorised brands via physical stores and omnichannel channels (website and social media). The company procures watches from watch brand owners and retailers them to customers. The company also generates revenue from retail of certified pre-owned luxury watches.
Business Segments
Operation of branded luxury watch retail stores at various locations in India where customers can purchase watches
Online sale of luxury watches through the company's website and interaction with customers through social media channels
The company operates luxury watch boutiques selling premium, bridge-to-luxury, luxury, and high-luxury watches from international brands through physical stores and online channels. The company also offers certified pre-owned luxury watches.
Retail of watches in the premium price segment (₹0.25 lakhs - ₹1 lakh per watch)
Retail of watches in the bridge to luxury price segment (₹1 lakh - ₹2.5 lakhs per watch)
Retail of watches in the luxury price segment (₹2.5 lakhs - ₹10 lakhs per watch)
Retail of watches in the high luxury price segment (₹10 lakhs and above per watch)
Retail of certified pre-owned luxury watches with technical expert supervision, 360-degree inspection and two year warranty
Repair, restoration, movement overhauling, ultrasonic cleaning, engraving and alterations of watches through state-of-art service centre
Multi-brand premium and luxury watch retail through physical stores and online channels with 50+ stores across pan-India presence and 17 million website visitors (9 months ended December 31, 2021)
Trading and retail sale of watches, accessories and luxury items through retail stores
Trading of watches and accessories
IT based business solutions
Trading of Luxury Cars
Retail sale of premium and luxury watches and accessories from international brands
Business promotion services to brands
SWOT Analysis
Strengths
- • Leading market position in luxury watch retail(p.23)
- • Diversified portfolio of premium and luxury watch brands(p.23)
- • Omnichannel retail presence(p.23)
- • Certified pre-owned luxury watch business segment(p.23)
- • Established luxury watch retail presence with multi-channel operations(p.53)
- • Credit rating reaffirmed at BBB+ (Positive) by ICRA for fund-based facilities(p.67)
- • Strong liquidity position with growing cash reserves(p.89)
- • Experienced management with expertise in luxury retail business(p.57)
- • Dominant market position in premium and luxury watch retail in India(p.177)
- • Largest vertical specialist premium and luxury watch retailer by market share(p.177)
- • Omnichannel retail capabilities combining online and offline(p.171)
- • Strong brand partnerships with international luxury watch manufacturers(p.171)
- • Pan-India presence as a vertical specialist(p.171)
- • Significant revenue base in growing luxury watch segment(p.177)
- • Market leadership in luxury watch retail with 20% share in luxury segment(p.221)
- • Large and loyal customer base of HNI customers with repeat purchase behavior(p.216)
- • Leading omnichannel retail player with strong digital infrastructure(p.216)
- • Extensive network of 50 strategically located retail stores across 17 cities(p.217)
- • Strong long-standing relationships with 50+ leading luxury watch brands(p.221)
- • Early mover advantage in certified pre-owned luxury watches business(p.222)
- • Expert service infrastructure with Swiss-equipped watch care center(p.231)
- • Experienced founder-led management with deep industry expertise(p.222)
- • Advanced digital infrastructure and online marketing reach(p.234)
- • Comprehensive in-house marketing and content capabilities(p.234)
- • Pan-India retail presence with digital edge over competitors(p.236)
- • Sophisticated inventory and merchandising management systems(p.233)
- • Strong collaborative relationships with luxury brand partners(p.233)
- • Inter-store inventory optimization across geography(p.233)
- • Leading market position in luxury watch retail with significant scale(p.392)
- • Extensive multi-brand portfolio across premium and luxury segments(p.392)
- • Strong omnichannel presence with significant digital reach(p.392)
- • High customer retention and repeat purchase rates(p.393)
- • Large, engaged digital community and customer database(p.393)
- • Specialized in-house service capabilities with certified horological engineers(p.393)
- • Increasing average selling prices and product mix towards luxury segment(p.393)
Weaknesses
- • Lack of brand ownership—dependent on third-party license(p.48)
- • Contingent tax liabilities(p.42)
- • Significant store concentration risk(p.47)
- • High inventory holding levels relative to sales(p.44)
- • Pending civil litigation against company(p.45)
- • History of losses in recent fiscal year(p.56)
- • High dependence on key personnel and risk of attrition(p.57)
- • Entire lease portfolio represents operational vulnerability with no ownership(p.52)
- • Concentrated lease portfolio risk with one store closure incident(p.53)
- • Significant exposure to cyber fraud and IT vulnerabilities(p.52)
- • Subsidiary may incur losses affecting parent company(p.52)
- • Past credit rating downgrade by CRISIL with ratings withdrawn(p.55)
- • Promoter-owned property creates conflict of interest risk(p.53)
- • Statutory audit emphasized material uncertainties from Covid-19(p.61)
- • High debt burden with significant lease liabilities(p.63)
- • Dependence on international luxury watch brands for inventory(p.176)
- • Vulnerability to supply chain disruptions from import-dependent business model(p.75)
- • Non-exclusive supply arrangements with most suppliers(p.215)
- • High dependence on discretionary consumer spending(p.216)
- • Limited ability to control distribution terms with luxury watch brands(p.220)
- • Mall location dependency despite efforts to diversify(p.219)
- • Dependence on leased retail premises with limited control(p.236)
- • Heavy reliance on multi-brand luxury watch retail model(p.233)
- • Significant employee benefits expense as percentage of revenue(p.235)
- • Absence of award and accreditation recognition(p.250)
- • Pending brand trademark ownership transfer(p.236)
- • Concentration of revenue in joint venture with losses(p.345)
- • Significant dependence on related party transactions and shareholder deposits(p.354)
- • High leverage from bank borrowings with security pledges(p.354)
- • Cybercrime fraud loss with partial recovery uncertainty(p.337)
- • Store embezzlement losses indicating internal control weaknesses(p.338)
- • Inventory management risks with slow-moving stock provisions(p.347)
- • Substantial dependence on lease arrangements for store locations(p.396)
- • Significant outstanding borrowings with repayment on demand provisions(p.355)
- • High financial leverage with total debt exceeding equity(p.366)
- • Cyber fraud and inventory embezzlement incidents(p.381)
- • Significant lease liability obligations and dependence on lease arrangements(p.371)
- • Currency exposure from international sourcing of watch inventory(p.365)
Opportunities
- • Expanding watch market with strong growth trajectory(p.23)
- • Store expansion strategy(p.49)
- • Organized retail channel growth(p.23)
- • Expansion into new geographic markets and store locations(p.64)
- • Growing e-commerce and omnichannel retail potential(p.53)
- • Rising disposable incomes and consumer spending in India(p.71)
- • High growth trajectory in luxury watch market in India(p.167)
- • Rapid expansion of premium and luxury watch market segment(p.167)
- • Growing consumer wealth and disposable income in target markets(p.164)
- • Expansion opportunity in second-hand luxury watch market among younger demographics(p.166)
- • Rising urbanization creating new consumption centers(p.163)
- • Potential for new store expansion and renovation(p.136)
- • Growing middle and upper-income class with increasing discretionary spending(p.164)
- • Expansion into adjacent luxury product categories(p.222)
- • Significant growth potential in certified pre-owned luxury watch market(p.224)
- • Expansion to neighboring countries with growing HNI populations(p.223)
- • Rising number of HNIs driving demand for luxury watches(p.216)
- • Growth of organized retail penetration in luxury watch segment(p.182)
- • Increasing penetration and acceptability of e-commerce channels(p.192)
- • Opportunity to secure exclusive brand partnerships and agencies(p.225)
- • Expansion of omnichannel marketing strategy across digital platforms(p.234)
- • Potential for pre-owned and luxury car retail business expansion(p.249)
- • Expansion of pre-owned watch and dedicated service offerings(p.250)
- • Growth through strategic retail partnerships and brand collaborations(p.234)
- • Content-driven digital engagement through specialized media(p.234)
- • Expansion of retail presence through store openings and capital work in progress(p.340)
- • Growth in cash position to support expansion and working capital(p.305)
- • Business expansion through technology and digital infrastructure development(p.342)
- • Growing watch market with strong projected CAGR through 2025(p.394)
- • Expansion of physical retail network to capture underserved geographies(p.396)
- • Growing pre-owned luxury watch market segment(p.392)
- • Increased digital transformation and online sales growth post-Covid(p.394)
- • Recovery in consumer discretionary spending and luxury market post-pandemic(p.394)
Threats
- • Pandemic disruption to retail operations and supply chains(p.39)
- • Supplier relationship vulnerability without exclusive arrangements(p.41)
- • Supplier termination risk due to brand strategy changes(p.41)
- • Dependency on third-party brand reputation and management(p.42)
- • Global luxury watch supply disruptions(p.40)
- • Competition from larger retailers with greater resources(p.43)
- • Intense competition from organized and unorganized luxury watch retailers(p.63)
- • Rising e-commerce competition creating pricing pressure(p.53)
- • Exposure to foreign exchange fluctuation risks(p.58)
- • Significant import duty and tax burden on luxury watches(p.60)
- • Seasonality in revenue with dependency on festive seasons(p.62)
- • Regulatory restrictions on foreign investment in multi-brand retail(p.60)
- • Economic slowdown and decreased consumer discretionary spending(p.71)
- • Dependence on third-party logistics with vulnerability to disruptions(p.67)
- • Non-exclusive supplier arrangements limiting product differentiation(p.58)
- • Risk of regulatory penalties and compliance failures(p.60)
- • Macroeconomic volatility and global financial instability risks(p.72)
- • Intense competition from organized and unorganized watch retailers(p.175)
- • Risk of economic slowdown impacting luxury consumption(p.166)
- • Competition from e-commerce and online marketplaces(p.171)
- • Regulatory restrictions on FDI limiting brand expansion strategies(p.171)
- • Volatility in foreign exchange rates affecting import costs(p.143)
- • Cyclicality of luxury goods market dependent on economic conditions(p.167)
- • High import duty on luxury watches reducing competitiveness(p.208)
- • Prevalence of counterfeit watches in Indian luxury watch market(p.192)
- • Regulatory restrictions on FDI in multi-brand retail limiting brand expansion(p.208)
- • Competition from competitors with greater resources(p.215)
- • Limited availability of premium retail real estate(p.207)
- • Economic cyclicality and discretionary spending sensitivity(p.216)
- • Stringent brand control over distribution limiting market penetration(p.232)
- • Risk of lease non-renewal or unfavorable rental terms(p.236)
- • Regulatory compliance burden under multiple Indian regulations(p.240)
- • Exposure to evolving data protection and digital commerce regulations(p.239)
- • Regulatory requirements for country-of-origin labeling and e-commerce(p.238)
- • Exposure to luxury goods import duties and foreign trade policies(p.233)
- • COVID-19 pandemic impact on operations and results(p.336)
- • Complex tax disputes and regulatory uncertainties(p.337)
- • Inventory risk exposure through traded goods concentration(p.314)
- • Industry-wide cyclicality and sensitivity to economic downturns(p.394)
- • Intense competitive pressure from better-resourced competitors(p.395)
- • Dependence on continued brand relationships and distribution arrangements(p.394)
- • Covid-19 pandemic impact on consumer spending and movement(p.394)
- • Foreign exchange volatility affecting sourcing costs(p.365)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Yashovardhan Saboo | Promoter | 1.98% | — |
| KDDL Limited | Corporate Promoter | 63.53% | — |
| Mahen Distribution Limited | Corporate Promoter | 12.02% | — |
| KDDL Limited | Promoter | — | — |
| Yashovardhan Saboo | Managing Director/Promoter | — | — |
| Mahen Distribution Limited | Promoter | — | — |
| KDDL Limited | Promoter | 63.53% | 51.31% |
| Mahen Distribution Limited | Promoter | 12.02% | 9.76% |
| Yashovardhan Saboo | Promoter | 1.98% | 1.29% |
| KDDL Limited | Promoter | — | — |
| Yashovardhan Saboo | Promoter | 1.98% | — |
| KDDL Limited | Promoter | — | — |
| Mahen Distribution Limited | Promoter | — | — |
| KDDL Limited | Promoter / Holding Company | 64.55% | — |
| Mahen Distribution Limited | Promoter / Fellow Subsidiary | 12.21% | — |
| Mr. Yashovardhan Saboo | Promoter | 2.01% | — |
| KDDL Limited | Holding Company / Promoter | — | — |
| Yashovardhan Saboo | Promoter | — | — |
| KDDL Limited | Promoter Group | — | — |
| Anuradha Saboo | Promoter | — | — |
Leadership
Anil Kumar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Ethos Limited IPO FAQs
What is the lot size of Ethos Limited IPO?
The minimum lot size of Ethos Limited IPO is 17 shares. One lot costs ₹14,926 at the cut-off price.
When does Ethos Limited IPO open and close?
Ethos Limited IPO opened for subscription on 18 May 2022 and closed on 20 May 2022.
What is the listing date of Ethos Limited IPO?
Ethos Limited IPO listed on 30 May 2022.