The ₹437-crrore initial public offering of luxury and premium watch retail player Ethos opens for subscription on Wednesday. The public issue, with a price band of ₹836-878 a share, will close on May 20 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 of up to 11.08 lakh shares (worth about ₹97 crore). While 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.
Raises ₹142 crore from 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 nine 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 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 when seen in exclusively luxury segment 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.