Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on June 18, 2025
- The company is engaged in the business of operating chain of luxury boutiques.
• It posted growth in its top and bottom lines for FY24 and FY25.
• The RI is at a discount of around 36.8%, and thus a not to miss opportunity.
• Well-informed investors may park funds for medium term in this lucratively priced RI.
PREFACE:
The company is coming out with its RI to mobilize Rs. 400.00 cr., and is opening for subscription on June 20, 2025, and its offer document is dated June 06, 2025, with a record date of June 12, 2025, but the offer document was uploaded on the designated exchange only on June 18, 2025. Thus, delayed submission of offer documents for RI is unabatedly going on.
ABOUT COMPANY:
Ethos Ltd. (ETHOS) was originally incorporated as ‘Kamla Retail Limited’ under the provisions of Companies Act, 1956, at Parwanoo, Himachal Pradesh, pursuant to the certificate of incorporation dated November 5, 2007, issued by the Assistant Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh. The Company was granted certificate for commencement of business on November 16, 2007, by the Assistant Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh. Subsequently, the name of the Company was changed to ‘Ethos Limited’ pursuant to a special resolution passed by the Shareholders on March 2, 2012, and a fresh certificate of incorporation consequent upon change of name was issued by Registrar of Companies, Himachal Pradesh on March 5, 2012.
ETHOS is engaged in the business of operating chain of luxury watch boutiques. As a part of its business, it required to buy watches and pay lease rent for the boutiques it is operating in. With the expansion of business in both product segment and geographical segment (increase in new boutique), the company require more inventory for the boutiques. All these factors may result in increase in the quantum of working capital requirements.
The Company proposes to utilize Rs. 112 cr., Rs. 120 cr., and Rs. 78 cr. of the Net Proceeds in Fiscals 2026, 2027 and 2028, respectively, towards its working capital requirements. The balance portion of working capital requirement shall be met from internal accruals and working capital facilities. As of March 31, 2025, it had 780 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 2277250 equity shares of Rs. 10 each at a fixed price of Rs. 1800 per share to mobilize Rs. 409.91 cr. The RI is opening for subscription on June 20, 2025, and will close on July 03, 2025. The company is offering RI in the ratio of 4 for 43 to its eligible stakeholders as of the record date of June 12, 2025. The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 3.79 cr. for this RI process, and from the net proceeds, it will utilize Rs. 310.00 cr. for working capital, and Rs. 96.11 cr. for general corporate purposes. The offer is at a discount of around 36.8% based on its last traded price of Rs. 2848.45 as of June 18, 2025 (as per BSE Web).
The RI is self-managed by the company itself, and KFin Technologies Ltd. is the registrar to the issue. Motilal Oswal Investment Advisors Ltd. is the advisor to the issue.
Post RI, company’s current paid-up equity capital of Rs. 24.48 cr. will stand enhanced to Rs. 26.76 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 4816.39 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit of Rs. 1022.61 cr. / Rs. 83.30 cr. (FY24), Rs. 1275.93 cr. / Rs. 96.29 cr. (FY25). Its paid-up equity capital of Rs. 24.48 cr. is supported by free reserves of Rs.957.72 cr. as of March 31, 2025, and its NAV stands at Rs. 401.22.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 543532 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 2999.00 on June 11, 2025, and opened on an ex-right basis at 2850.00 on June 12, 2025. Since then, it has marked a high/low of Rs. 3015.55 / Rs. 2801.10. The scrip last closed at Rs. 2848.45 as of June 18, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 3395.44 / Rs. 1896.74.
The promoters’ holding has been constant around 50.5+% for the last three quarters ended with March 31, 2025. The counter is well managed above the RI price to lure investors.
Conclusion / Investment Strategy
ETHOS is engaged in the business of operating chain of luxury boutiques. It posted growth in its top and bottom lines for FY24 and FY25. The RI is at a discount of around 36.8%, and thus a not to m
Review By Dilip Davda on June 18, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
