Shares of Ethos Limited, one of the largest luxury and premium watch retail players in India, will debut on the Dalal Street on Monday. Ethos stock will get listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) at 10 am on May 30. Ethos initial public offering (IPO) received tepid response from the investors when it had opened for subscription earlier this month. Considering the volatilily in the market, high price of the public offer and muted interest among the investors and grey market, the analysts expect a flat listing for Ethos Limited on Monday.
Ethos IPO opened for subscription between May 18 to 20. The price band has been fixed at Rs 836 to Rs 878 per equity share. Investors could bid for a minimum lot size of 17 shares and in multiples thereof. The minimum investment for a retail investor was Rs 14,926 at the upper end of the price band for 17 shares. A retail investor could apply for up to 13 lots.
The premium watch retailer aimed to raise Rs 472 crore through the public offer. Ethos IPO comprised a fresh issue of shares aggregating to Rs 375 crore and an offer-for-sale (OFS) of up to 1,108,037 equity shares.
At the upper end of the price band, Ethos IPO is valued at 95x P/E on annualised FY22E basis.
Ethos IPO was IPO was booked 1.04 times during the time of subscription. Ethos IPO received bids for 41.39 lakh shares against the 39.78 lakh shares that were on offer, according to the data available at NSE.
Ethos IPO GMP Today
Ethos IPO could create much stir in the grey market. The unlisted shares of Ethos IPO was trading at a discount of Rs 5 in the grey market, according to IPO Watch. The grey market premium of Ethos IPO was in the negative territory for the last two weeks. Market observers expect a discounted listing of Ethos stock.
Ethos IPO Listing Expectation Today:
Commenting on the listing of Ethos IPO on Monday, Aayush Agrawal, senior analyst, Swastika Investmart Ltd, “The company does not have a listed peer, but the valuation demanded is too rich despite the prospects being good and the current volatile market is not conducive for primary issues with such rich valuations.
“There is not much activity in the grey market therefore it is difficult to predict the exact listing price. We expect a tepid listing because of expensive valuations but any positive surprise can’t be ruled out amid improved market sentiments," he added.
Abhay Doshi, co-founder, unlisted Arena said, “The luxury and premium watch retail player - Ethos is expected to make a flat listing debut on the bourses on account of muted response from the participants due to rich pricing and unfavourable market conditions."
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