India’s largest luxury and premium watch retailer Ethos on May 17 mopped up Rs 141.68 crore from nine anchor investors, ahead of its IPO.
The public issue will open for subscription on May 18 and close on May 20.
The company in its BSE filing said it has finalised the allocation of 16.14 lakh equity shares to anchor investors at a price of Rs 878 per share.
ICICI Prudential Flexi Cap Fund bought 5.30 lakh shares in Ethos Limited, Jupiter India Fund purchased 3.73 lakh shares, Saint Capital fund bought 1.59 lakh shares and 1.55 lakh shares were bought by Cohesion MK Best Ideas Sub-Trust in the luxury watch retailer.
Jupiter South Asia Investment Company Limited – South Asia Access Fund bought 77 thousand shares while Coeus Global Opportunities fund, Alchemy Leaders of Tomorrow-Closed ended Fund Series-2, UPS Group Trust, and Nomura Singapore Ltd ODI bought 79,713 shares each in the Chandigarh based company.
ICICI Prudential Flexi Cap Fund which bought 5.30 lakh shares in Ethos Limited was awarded 32.82 percent of the anchor investor portion.
Ethos intends to raise nearly Rs 472 crore through the public issue that comprises a fresh issue of equity shares aggregating up to Rs 375 crore and an offer for sale of 1,108,037 equity shares aggregating up to Rs 97.29 crore by the shareholders and promoters.
The price band for the offer has been fixed between Rs 836 - 878 per equity share of face value of Rs 10 each.
Of the total offer size, 50 percent of the net offer will be reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
Post the issue, the promoter shareholding will decline 19.36 percent and come down to 61.65 percent from the 81.01 percent stake held by them currently in the company.
The company intends to utilise the net proceeds from the fresh issue to pre-pay or repay in part or full, the existing loans availed by the company to an extent of Rs 29.89 crore.
Rs 234.96 crore is intended to be utilised for funding its working capital requirements. Rs 33.27 crore is proposed to be utilised to open new stores and renovate certain existing stores while Rs 1.98 crore will be utilised for upgrading the existing ERP system. The remaining funds will be used for general corporate purposes.
The company will not get any proceeds from the OFS portion, the proceeds of which will entirely go to the promoters.
Pre-IPO placement
Marquee investors, Mukul Mahavir Agrawal and Sunil Singhania-led Abakkus Growth Fund and Alchemy Capital purchased stakes in Ethos Limited.
Mukul Mahavir Agrawal was allotted 23,145 equity shares of Ethos Limited via a rights issue at Rs 550 per share; prior to the allotment, he held 9,00,976 shares, which climbed to 9,24,121 equity shares. As of the date of filing of the RHP i.e May 6, 2022, it represented 4.84 percent of the firm.
Sunil Singhania's Abakkus Growth Fund-2 came in as a Pre IPO Investor and bought 3,02,663 equity shares of the company of face value of Rs 10 each for a price of Rs 826 per share. It holds 1.59 percent of the firm as of the date of filing of the RHP with an investment value of Rs 24.99 crore.
Siddharth Iyer had 4,79,452 equity shares, which he received via a preferential allotment at Rs 292 per share on July 24, 2018, followed by an allotment of 12,317 equity shares at a later date, bringing his total number of equity shares to 4,91,769, with a 2.58 percent ownership of the company as of the RHP filing date. His entire ownership is worth Rs 43.17 crore at the higher end of the pricing range.
Prior to the allotment of 12,500 shares via a rights issue, Hiren Ved promoted Alchemy Capital held 5,00,000 equity shares. As of the date of filing of the RHP it has a 2.69 percent stake in the company.
The other investors in the company are Pulkit Sekhsaria who holds a 1.43 percent stake and Rahul Kayan of Makerfich Consultancy services who holds a 1.26 percent stake in Ethos Ltd.
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