Ethos raises Rs 142-cr from anchor investors including Nomura Singapore; IPO opens, should you subscribe-
时间:2024-06-26 20:22:53 阅读(143)
Ethos’ Rs 472-crore IPO opened for subscription on Wednesday, and will close on 20 May. Chandigarh-based Ethos has garnered Rs 141.69 crore from 9 anchor investors ahead of its initial share sale. The company informed the exchanges that it has allocated 16.13 lakh shares at Rs 878 per share on Tuesday, May 17, 2022 to anchor investors. The anchor investors in Ethos’ IPO includes marquee names such as ICICI Prudential FlexiCap Fund, Jupiter India fund, Saint Capital Fund, Cohesion MK Best Ideas Sub-Trust, Jupiter South Asia Investment Company Ltd- South Asia Access Fund, Coeus Global Opportunities Fund, Alchemy Leaders of Tomorrow- Closed ended fund Series 2, UPS Group Trust, and Nomura Singapore Limited ODI.
Out of the total allocation of 16,13,725 equity shares to the anchor investors, 5,29,601 equity shares (i.e 32.82% of the total allocation to anchor investors) were allocated to one domestic mutual fund through a total of one scheme. There are no listed companies in India that engage in a business similar to that of Ethos.
Should you subscribe to Ethos IPO?Nirmal Bang has advised investors to subscribe to Ethos IPO for long-term, while ICICI direct has suggested to avoid this issue. Nirmal Bang said that he company is expanding its stores (13 new stores over 50 existing in next three years). “With new categories we believe it can grow strongly. We understand that the company is very small as compared to other listed retail players and focused on one category (currently), we believe that there is scope for growth in future,” it said.
Despite Ethos following an asset light business model, higher capital blockage in inventory (Inventory days: 170+) and lower margins have translated into company reporting single digit RoE (~7-8%), ICICI Direct said. At the upper end of the price band, Ethos is valued at 95x P/E on an annualised FY22E basis. “Sustained enhancement in profitable growth and improvement in return ratios would be key, monitorable, going ahead,” the research firm added.
Analysts at Marwadi Financial Services have recommended subscribing to this issue but with caution.While Angel One has given ‘neutral’ rating to it. Analysts at Angel One said that in terms of valuations, the post-issue TTM P/E works out to 96.2x (at the upper end of the issue price band), which is high considering company’s historical top-line & bottom-line negative CAGR of ~7% and ~24% respectively over FY19-21. “However, Ethos has a healthy market share in total retail sales in the premium and luxury segment. Further Ethos has strong brands and a wide range of products but we believe that these positives are captured in the valuations commanded by the company,” it added.
Marwadi Financial Services has assigned subscribe (with caution) rating to the IPO as the company is a leading luxury watch omnichannel retail player in India. “However, the IPO is richly priced and the company will have to continue growing its business at a high growth rate in order to justify its valuation which keeps us cautious from a long term perspective,” it added.
上一篇:2024 Expectations- Is the online gaming industry in India ready for a fresh start-
下一篇:Year Ender 2023- Why ed-tech startups need to press the reboot button
猜你喜欢
- Will Nifty test 21,500 levels or dip ahead- See GIFT Nifty, FII data, F&O ban, crude, more before market opens
- Reliance Jio arm to buy optical fibre cables worth Rs 124 crore from HFCL
- YashoBhoomi Convention Centre- A look inside world’s finest state-of-the-art facilities – See Pics
- Your queries- Loans - Brother-sister duo is not automatically given loan
- Reliance, Zomato, Bharti Airtel, Yes Bank, Indian Oil, Kotak Mahindra Bank, stocks in focus on 3 Aug 2022
- Red Sea crisis- Inter-ministerial meet next week to discuss ways to insulate India’s trade
- Will the strong GDP numbers propel Nifty to claim a new high- 8 things to know before the share market opens
- Your Money- Rate cuts coming, but how soon-
- Xiaomi 12 Pro first look at design, specs, top features and more - In Photos