Ethos Ltd To Come Up With ₹410 Crore Rights Issue

GURUGRAM, JUNE 3, 2025:  Ethos Ltd (NSE: ETHOSLTD | BSE: 543532), India’s premier luxury watch retailer, has announced a rights issue of fully paid-up equity shares worth up to ₹410 crore. Ethos will raise funds by issuing equity shares on a rights basis to existing shareholders, although the final terms, including the issue price, rights entitlement ratio, and schedule, will be determined in due course.

The primary objective of the rights issue is to raise funds for the company’s working capital requirements, in support of its expansion plans and diversification strategy.

What Does The Rights Issue Offer Include?

• Total Issue Size: Up to ₹410 crore
• Face Value: ₹10 per share
• Issue Type: Rights issue to eligible equity shareholders
• Record Date: Yet to be announced
• Pricing & Ratio: To be finalised
• Proceeds Utilisation: Primarily for working capital across FY26–FY28

Promoter Commitment Towards The Rights Issue

Promoters Yashovardhan Saboo, KDDL Ltd, and Mahen Distribution Ltd have reaffirmed their commitment to exercise their rights entitlement fully. They have clarified that they do not intend to renounce their rights, except within the promoter group. They may also subscribe to additional shares in the event of undersubscription by public shareholders. The company has stated that no shares from the under-subscribed portion will be allotted to any specific investor.

Ethos Strong Business Footprint: How Will ₹410 crore Help?

Ethos operates 73 retail boutiques across 26 Indian cities, with flagship “Ethos Summit Boutiques”, brand-exclusive mono boutiques, and its pre-owned luxury watch retail format “Second Movement”. It retails over 72 luxury watch brands through both offline and omnichannel platforms. In FY25, its website received over 188 lakh sessions, ensuring growing digital traction. The company has been engaged in expanding its business:

• Domestic Expansion: 14 new boutiques opened in FY25
• International Foray: New subsidiary, Ficus Trading LLC, established in Dubai
• Diversification: Foray into luxury lifestyle retail via Ethos Lifestyle Pvt Ltd
• Digital Integration: Robust online interface backed by a CRM-driven loyalty program, “Club Echo”, with over 3.29 lakh members

Ethos plans to utilise ₹31,000 crore from the rights issue proceeds across FY26 to FY28 to bridge its working capital gap and increase its focus on operational efficiency amid macroeconomic concerns, such as foreign exchange volatility and rising import duties.

Since the luxury retail business is increasing rapidly in India and is currently valued at $8 billion, with projections of reaching $14 billion by 2032, Ethos, having ₹410 cror,e will have its business to tap into the luxury retail business with increased market share and increase its revenue and profits accordindly.

How Did Investors Take The News?

The announcement was taken positively by investors as Ethos opened 3.32% higher at ₹2,857, up by ₹103.45 in the early trade session. Analysts have maintained a “Buy” rating for the stock and see 60% upside in the future, thanks to its strong financial results with an 8.1% higher profit of ₹22.74 crore.

REF:https://nsearchives.nseindia.com/corporate/ETHOS_03062025194607_SE_DLOF.pdf

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