Luxury and premium watch retail player Ethos has filed preliminary prospectus with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO consists of a fresh issue of equity shares aggregating to Rs 400 crore and an offer-for-sale (OFS) of up to 1,108,037 equity shares, according to the draft red herring prospectus (DRHP).
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.
Additionally, the company may consider a further issue of equity shares including a private placement aggregating up to Rs 50 crore. If such placement is completed, the fresh issue size will be reduced.
Out of the proceeds, Rs 29.89 crore will be utilised for the repayment of debt, Rs 236.75 crore for funding working capital requirements, Rs 33.27 crore for financing establishment of new stores, Rs 1.98 core for financing upgradation of enterprise resource planning (ERP) and general corporate purposes.
The company's revenue from operations stood at Rs 386.57 crore for the fiscal 2021, while its net profit was Rs 5.78 crore for the same period. For the six months ended September 2021, revenue from operations was Rs 223.31 crore and net profit was Rs 3.75 crore.
Ethos has the largest portfolio of premium and luxury watches in India and retails to 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.
It enjoys a healthy market share of 20 per cent in the luxury watch retail segment and 13 per cent in the premium and luxury watch retail segment in India.
Under the brand name Ethos, it opened its first luxury retail watch store in January 2003 at Chandigarh, promoted by KDDL Ltd.
It has 50 physical retail stores in 17 cities in India in a multi store format, and offers an omnichannel experience to its customers through its website and social media platforms.
Emkay Global Financial Services and InCred Capital Wealth Portfolio Managers are the book running lead managers to the issue.
Also Read: Budget 2022: Here's what a leading logistics player wants for the industry
Also Read: Investors lose Rs 20 lakh crore in stocks in five trading sessions; what’s next?
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today