Ethos Limited IPO 

Ethos Limited

Rs.14,926 / 17 shares
Minimum Investment

IPO Details

IPO date:
18th May to 20th May, 2022

Issue size:
Rs. 472.29 crores

Listing at:
BSE & NSE

Retail quota:
35%

IPO price:
Rs 836 - Rs 878 per equity share

Minimum lot size:
17 equity shares and in multiples of 17 thereafter

Open Free Demat Account & Apply for Ethos Limited

ZERO brokerage on Intraday trades

Company Background of Ethos Limited

Ethos Limited is India’s one of the largest luxury and premium watch retail player having 13% share of the total retail sales in premium and luxury segment and a share of 20% when seen in exclusively luxury segment in the financial year 2020 delivering a content-led luxury retail experience to its customers through online and physical presence. (Source: ‘Industry Report on Premium and Luxury Watch Retail in India dated April 26, 2022, prepared by Technopak Advisors Private Limited’)

Read More Show Less

In addition to a chain of 50 physical retail stores in 17 cities in India in a multi store format, the company offers an Omnichannel experience to customers through its website and social media platforms. The company has the sizeable portfolio of premium and luxury watches in India enabling the company to retail 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.

The company enjoys a healthy market share of 20% in the luxury watch retail segment and 13% in the premium and luxury watch retail segment in India. In addition to its premium and luxury watch retail, the company also undertakes retail of certified pre-owned luxury watches since Fiscal 2019.

The company’s first luxury retail watch store was opened in January 2003 at Union Territory of Chandigarh by its Promoter, KDDL Limited, a company listed on the BSE and the NSE, under the brand name “ETHOS”. Subsequently, the retail business of its Promoter was hived off into the company under the name and style of Kamla Retail Limited in 2008 and the company was renamed as Ethos Limited in 2012, in order to consolidate the business of luxury watch retail under one umbrella for better management and focused approach.

As of date of this Red Herring Prospectus, the company has an extensive network of 50 retail stores spread across 17 cities. Ethos Limited’s 50 stores are categorised into 14 Ethos Summit Stores and one Airport store (that houses bridge to luxury, luxury and high luxury brands), 14 multi-brand outlets and 10 Ethos Boutiques both housing bridge to luxury and premium brands, 10 luxury segment mono-brand boutiques offering a single luxury watch brand and 1 CPO luxury watch lounge for pre-owned watches.

Let us now look at a few competitive strengths and strategies of Ethos Limited...

Competitive Strengths

+ Access to Large Luxury Customer Base: The company has built its customer base over the years and continue to aim to attract new customers to its platform by providing an engaging shopping experience. As of March 31, 2022 the company has access to a HNI customer base of over 2,83,300. Access to its digital platform increased over the calendar years i.e. 15.47 million number of sessions in 2019 to 21.46 million number of sessions in December 31, 2021. The company’s understanding of the luxury customers has enabled it to evolve its luxury customer base, enabling to drive the sales of its luxury and high luxury watches. The company’s loyalty programme, Club Echo, has also been subscribed by over 2,83,300 registered members which gives a unique insight into understanding the buying pattern of company’s customers and reward them for their loyalty. Ethos Ltd believes that access to a large number of luxury customers gives it the competitive advantage over competitors in sale of products and driving revenue and profitability.

+ Leading Luxury Watch Omnichannel Retail Player of India : The company was quick to establish a robust digital infrastructure which has been its key strength and enabled it to scale business and increase its customer base. The company’s digital team consists of over 70 employees across different teams, including performance marketing, creative, content, social media, product/website, technology and internet sales among others. The company’s website showcases over 50 brands, offering a great eco-system for visitors to not only purchase these watches online but also to discover watches, and understand their legacies. The company uses data collected across its channels to re-market to the customers who have shown interest in its website across the popular networks and social media platforms to remain top-of-mind for its customers. The company is the market leader in Luxury watch segment in India, and it also leads the Luxury Omnichannel market in India, with wide omnichannel presence and focus. In FY 2020, 36% of Ethos’s revenue came from digitally enabled sales.

+ Strategically Located and Well Invested Store Network with Attractive In-Store Experience : With 50 retail stores, over 7,000 varied premium and luxury watches and about 30,000 watches in stock at any given time, the retail stores are located strategically in shopping malls, airport terminals and other premium areas. The company believes that the prime locations that it chooses for its stores in the growing Indian luxury watch markets, the investments that the company has made in these stores, the selection of products that the company is able to offer to its customers in-store, the presentation of products within the stores, the quality of staff and the service that the company offers to customers will continue to help the company to increase sales of luxury watches. The company’s flagship stores are high-street stores allowing lower mall dependency for the company, which proved to be a massive structural advantage, especially during the pandemic year, when all the shopping malls were directed to be closed down. For the nine months period ended December 31, 2021, Fiscals 2021, 2020 and 2019, the company’s capital expenditure on opening new stores and refurbishing old ones was Rs 607.88 lakhs, Rs 1,088.36 lakhs Rs 1,379.13 lakhs and Rs 1,394.46 lakhs, respectively.

+ Strong and Long-Standing Relationships with Luxury Watch Brands: The company value its brand relationships and have a team of brand managers who work closely with brands to strategize and execute growth and brand building strategies. The company view it as brand custodians and apply a client-servicing mindset to its interactions with brands to ensure the company is building long-term strategic relationships. Some of the company’s business partnerships with brands like Omega, Rado, Tissot, Longines, Baume Mercier, IWC Schaffhausen, Jaeger LeCoultre, Carl F. Bucherer and Balmain have been ongoing for more than a decade. Ethos believes that the strength of the company’s long-standing relationships with leading luxury watch brands in India has assisted, and will continue to assist, it in further growing its presence in India. It also believes that this strong and longstanding network of relationships with owners of luxury watch brands enhances its competitive position.

+ Founder-Led Company Supported by a Professional Management Team: The company benefits greatly from an experienced management team with deep industry know-how and knowledge. The management team is led by Yashovardhan Saboo, the company’s Managing Director. He was involved in promotion of KDDL in 1981 and has since led it to the position of market leadership in India and abroad. He founded Ethos Limited in the year 2007, in name of Kamla Retail Limited. The company’s CEO, Pranav Saboo, who is also the founder and on the board of Dream Digital Technology Limited, a multi-faceted digital marketing company, has been instrumental in devising the strategy of making the online presence of the company. Manoj Subramanian, the company’ Chief Operating Officer, has been intrinsically linked with the watch industry for several years. The company’s Board member, Patrik Paul Hoffman has over 30 years of experience in the watch industry and has been at leadership positions with global watch brands and retailers. The management team understands the global luxury industry and the luxury customer in India.

Key Strategies

Here are a few strategies Ethos Limited has for its business:

Leveraging its luxury watch retail business and access to luxury customers to expand into other luxury verticals
Expanding its physical store network and increasing market share
Growing its certified pre-owned luxury watch retail business
Increasing its watch brands portfolio
Investing in its Brand

Ethos Limited Consolidated Financials

And finally here’s a look at key financials of Ethos Limited...

Revenue from operations

Particulars (in Rs. Lakhs)

Particulars (in Rs. Lakhs)

How to apply for an IPO?

Here's a video playlist to help you invest in the upcoming Ethos Limited IPO

How to apply for IPO through ASBA

How to apply for an IPO using UPI

Top Ethos Limited IPO FAQs

The Ethos Limited IPO has an issue size of Rs. 472.29 crore. The IPO opens for subscription on 18th May 2022, and ends on 20th May 2022.

Allotment dates are yet to be announced

Kfin Technologies Limited is the registrar for this IPO.

The dates are yet to be decided.

You can read more about Ethos Limited and its IPO from the company’s red herring prospectus (RHP) here.