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* Ethos is one of the largest watch retailers in the Indian premium and luxury watch industry. According to the ‘Industry Report on Premium and Luxury Watch Retail in India dated April 26, 2022, prepared by Technopak Advisors Private Limited’, Ethos has a market share of ~13% in the Rs 6,615 crores premium & luxury watch market (FY20), enabled by the portfolio of 50 luxury brands and a pan-India retail presence, supported by omnichannel and digital team capabilities.

* In addition to the pan-India presence through 50 retail stores in 17 cities, Ethos also offers an omni-channel experience through its website ‘www.ethoswatches.com’, which is India’s largest website for premium and luxury watches in terms of the number of brands and watches offered (Source: ‘Industry Report on Premium and Luxury Watch Retail in India dated April 26, 2022, prepared by Technopak Advisors Private Limited’ available on the following link: https://www.ethoswatches.com/investors-information).

* Apart from premium and luxury watch retail, Ethos also undertakes retail of pre-owned luxury watches under the ‘certified pre-owned’ (CPO) luxury watch lounge located in national capital territory of New Delhi and has plans to expand into other luxury categories through its agreements with global luxury luggage/jewellery brands Rimowa/ Messika. According to the ‘Industry Report on Premium and Luxury Watch Retail in India dated April 26, 2022, prepared by Technopak Advisors Private Limited’, the CPO market is a complementary market and has grown to about a 1/3rd of global premium and luxury watch sales. In India, the market is still at a nascent stage, with Ethos driving the development of this space currently.

* Going ahead, Ethos’ strategy is to improve assortment for existing brands as well as bring new brands to India through exclusive partnerships or otherwise, expand retail presence with 13 new stores and scale-up complimentary channels of CPO/ other luxury categories. Ethos’ avg. selling price (ASP) has increased from Rs 73,261 in Fiscal 2019 to Rs 1,42,795 for the nine months period ended December 31, 2021, led by increase in mix of luxury and high luxury watch categories.

* The Rs 47,228.56 lakh IPO includes Rs 37,500 lakhs fresh issue [cap price] and an OFS of 11.08 lakh shares. Following the listing, the m-cap at the cap price would be Rs 2,050.06 crores. Ethos plans to utilize the proceeds of the fresh issue to repay borrowings (Rs 2,989.09 lakhs), fund working capital (Rs 23,496.22 lakhs), finance capital expenditure for new stores/renovation of certain stores (Rs 3,327.28 lakhs), upgrade of ERP (Rs 198.01 lakhs) and the rest for general corporate purposes.

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