Shares of luxury and premium watch retail player Ethos Ltd on Monday listed with a discount of 6 percent against the issue price of Rs 878.
The stock made its debut at Rs 830, registering a decline of 5.46 percent from the issue price on the BSE. It further tumbled 9.24 percent to Rs 796.80.
At the NSE, it listed at Rs 825, lower by 6 percent.
Santosh Meena, Head of Research, Swastika Investmart Ltd. said, "Ethos Limited has debuted at Rs. 828 i.e. 6 percent below its issue price. The company’s negative listing can be attributed to the rich pricing, current market sentiments, and lack of investor interest. The company is one of the largest sellers of luxury watches in India having a loyal customer base, omnichannel distribution network, long-standing relationships with the best luxury watchmakers, and experienced promoters. However, the high valuations, lack of exclusive agreements with watchmakers, inventory heavy operations make this issue suitable only for long-term investors having a high-risk appetite. Those who applied for listing gains can maintain a stop loss of Rs. 800".
The initial public offer of Ethos was fully subscribed by 1.04 times on the last day of subscription on May 20.
The Initial Public Offering (IPO) had a fresh issue of equity shares aggregating to Rs 375 crore and an offer-for-sale of up to 11,08,037 equity shares.
Price range for the Rs 472.3-crore offer was at Rs 836-878 per share.
Proceeds from the fresh issuance will be utilised for repayment of debt, funding working capital requirements, opening new stores and general corporate purposes.
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.
Under the brand name Ethos, it opened its first luxury retail watch store in January 2003 in Chandigarh.
