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2022-05-28 11:22:50 Ethos to make tepid debut on Monday as stock trades at a discount in grey market after lacklustre IPO

The IPO barely managed to scrape and grey market price does not hint at Ethos listing at a premium.
Ethos Ltd, one of the largest watch retailers in the Indian premium and luxury watch industry, will make its debut on stock exchanges on Monday (May 30).
The company had launched its initial public offering on May 18 and the last day to subscribe to the IPO was May 20.

According to a report from Technopak Advisors, Ethos has 13 percent of the Rs 6,615 crore premium and luxury watch market as per data available for FY20. It had 20 percent of the exclusively luxury segment in the period. The company has a portfolio of 50 luxury brands and a pan-India retail presence supported by omnichannel and digital team capabilities.

Its network includes 50 physical retail stores in 17 cities in India and the firm has 7,000 premium watches and 30,000 watches in stock at any given point in time.
In the IPO garnered Rs 472 crore at Rs 878 per share through fresh issue of shares aggregating up to Rs 375 crore and an offer for sale of 1,108,037 shares by shareholders and promoters aggregating up to Rs 97.29 crore.

The subscription failed to catch investor fancy and barely managed to scrape through. It was subscribed 1.04 times on the final day. Retail investors bid for only 0.84 percent of their portion. The quota for qualified institutional investors (QIB) was subscribed 1.06 times and that for non-institutional investors (NII) 1.48 times.
As per IPO Watch, which tracks the grey market, the stock did not command any significant premium during the period of subscription and has been trading flat/at a discount over the past few days.

As per current grey market price, investors are not likely to make any listing gains on May 30.

“Ethos was commanding a premium in the last few sessions in the grey market and now slipped to a discount today in the range of Rs 5-10 per share,” said Vinit Bolinjkar, head of research, Ventura Securities. “This along with market volatility can have the stock listing at a discount in the range of Rs 868-873 per share.”

Earlier the brokerages were optimistic about the issue and had assigned a “subscribe for long term” or “subscribe with caution” rating to the issue. They were concerned about the reduction in discretionary spending by the consumer and the fact that most suppliers are non-exclusive apart and the threat of a future pandemic looms.

“We have assigned an 'avoid' rating to the issue as it is not encouraging to note the company performance for FY19-21 and sales volume and profitability are declining in recent years,” said Piyush Chajed, research associate, Choice Broking.

“At the higher price band of Rs 878, the company demanded a FY21 enterprise value/sales multiple of 4.5x which left investors with no margin of safety,” he added while not expecting the stock to list at any premium.


Echoing the views of both the experts above, Aditya Shah, smallcase manager and chief investment officer at JST Investment, said, “The listing will be very tepid and given the volatile market conditions there will not be any significant listing gains.”


The company intends to utilise net proceeds from the fresh issue to pre-pay or repay in part or full existing loans to the extent of Rs 29.89 crore. A sum of Rs 234.96 crore is intended to be used for funding working capital requirements; Rs 33.27 crore for opening new stores and renovating certain stores while Rs 1.98 crore for upgrading the enterprise resource planning system. The remaining funds will be used for general corporate purposes.


Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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2022-05-27 16:30:21 News Today:

Paradeep Phosphates: The non-urea fertilizers maker will be listed at the bourses Today. The company's Rs 1,501.73 crore initial public offering of the company was open for subscription between May 17-19 as the company sold its shares in the range of Rs 39-42 apiece.

Hindalco Industries: The Aditya Birla Group firm posted a 99.7 per cent rise in its consolidated profit after tax at Rs 3,851 crore for the quarter ended March, 2022. The company had posted a consolidated PAT of Rs 1,928 crore in the year-ago quarter.

ONGC: India's top oil and gas producer said it will invest Rs 31,000 crore over the next three years in exploring the Indian sedimentary basin for fuel reserves which could augment the nation's production in its attempt to be self-reliant in the energy sector.

NMDC: The state-owned miner said its consolidated net profit fell 36 per cent to Rs 1,812.98 crore for the quarter ended March 31, weighed down by higher expenses. The company had clocked Rs 2,835.54 crore net profit during the January-March quarter of 2020-21.

Tata Power: The renewable Energy arm of the power player announced the commissioning of a 100 MW solar project for Maharashtra State Electricity Distribution Company at Partur in Maharashtra. According to the statement, the installation comprising over 4,11,900 monocrystalline PV modules is expected to reduce around 234 million tonnes of CO2 annually.

Torrent Pharmaceuticals: The drug maker said it has inked a pact to acquire four brands from Dr Reddy's Laboratories. The Ahmedabad-based drug firm has entered into an agreement with Dr Reddy's Laboratories to acquire four of its brands -- Styptovit-E, Finast, Finast-T and Dynapress.

Cummins India: The engine and power equipment maker reported a marginal growth in its standalone profit after tax at Rs 189.15 crore in the quarter ended March, 2022. The company had posted a standalone PAT at Rs 185.69 crore in the year-ago quarter.

Samvardhana Motherson International: The auto component major, formerly known as Motherson Sumi Systems, reported a consolidated net profit of Rs 130 crore for the fourth quarter ended March. The company had reported a net profit of Rs 849 crore in the March quarter of 2020-21 fiscal.

Page Industries: The apparel manufacturer reported an increase of 64.86 per cent in net profit at Rs 190.52 crore for the fourth quarter ended March 31, 2022. The company had posted a net profit of Rs 115.56 crore during the January-March period a year ago.

Piramal Enterprises: The leading NBFC reported a consolidated net profit of Rs 150.53 crore in the fourth quarter ended March 31, 2022. The company had posted a consolidated net loss of Rs 510.39 crore in the same period previous fiscal. Open / Comment

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2022-05-26 08:35:01 Torrent Pharma: The drug maker said its consolidated loss stood at Rs 118 crore for the fourth quarter ended March 2022 on account of impairment provision of Rs 425 crore related to discontinuation of liquids business in the US. The company had reported a net profit of Rs 324 crore in the January-March period of 2020-21 fiscal.

Praj Industries: The engineering company reported a 10.7 per cent year-on-year (YoY) rise in the consolidated profit at Rs 57.6 crore for the quarter ended March 31, 2022. It has posted a profit of Rs 52 crore in the corresponding quarter of the previous financial year.

MOIL: The state-owned miner posted a rise of 13 per cent in its net profit to Rs 131.07 crore during the March quarter, supported by reduced expenses. The company had clocked Rs 116.03 crore net profit during the January-March quarter of 2020-21.

SJVN: The state-owned power firm reported an over 98 per cent decline in its consolidated net profit to Rs 7.49 crore in the March 2022 quarter, mainly due to lower revenues. The company had posted a consolidated net profit of Rs 619.92 crore in the quarter ended March 31, 2021.

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2022-05-26 08:35:00 News Today:

Infosys: The IT major has collaborated with global cybersecurity company Palo Alto Networks to elevate the security maturity of large enterprises with mission-critical digital landscapes and to help prevent the threat of cyberattacks. The companies will enhance these security solutions for their worldwide customers like Mercedes-Benz.

Bharat Petroleum Corporation: The oil marketing firm reported a 82 per cent decline in net profit in the quarter ended March 2022 as the firm held fuel prices despite rise in cost. Net profit of Rs 2,130.53 crore was reported in the January-March period as compared with Rs 11,940.13 crore.

Apollo Hospitals Enterprises: The hospital chain said its consolidated profit after tax declined by 46 per cent to Rs 90 crore for the fourth quarter ended on March 31, 2022. The health care provider had reported a PAT of Rs 168 crore in the January-March quarter of 2020-21 fiscal.

Coal India: The state-owned coal miner posted a 45.9 per cent rise in its consolidated net profit at Rs 6,692.94 crore for the quarter ended March, 2022 on the back of higher revenue from operations. The company's consolidated net profit was at Rs 4,586.78 crore in the year-ago period.

Fortis Healthcare: The hospital chain reported a 40 per cent jump in consolidated net profit at Rs 87.03 crore in the fourth quarter ended March 31, 2022. The company had posted a consolidated net profit of Rs 62.36 crore in the same quarter of the previous fiscal.

National Aluminium Company: The state run metal player reported a 9.5 per cent rise in consolidated profit at Rs 1,025.46 crore for the quarter ended March 2022 on the back of higher income. The company had reported consolidated profit of Rs 935.74 crore in the year-ago period.

Bata India: The shoemaker reported over two-fold increase in its consolidated net profit at Rs 62.96 crore for the fourth quarter ended March 31, 2022 helped by robust sales. The company had posted a net profit of Rs 29.47 crore in the January-March quarter a year ago.

Power Finance Corporation: The state-owned posted a nearly 10 per cent rise in the consolidated net profit at Rs 4,295.90 crore in the March quarter mainly on the back of higher revenues. The consolidated net profit of the company was at Rs 3,906.05 crore in the year-ago period.

Whirlpool of India: The consumer durables maker reported a 35.04 per cent decline in consolidated net profit to Rs 84.48 crore for the fourth quarter ended in March due to soft industry demand and rising commodity costs. The company had posted a net profit of Rs 130.06 crore during the March quarter of the previous fiscal.

Max Healthcare Institute: The medical and healthcare player said its profit after tax increased by 58 per cent to Rs 172 crore for the fourth quarter ended March 2022. The company had reported a net profit of Rs 109 crore for the January-March quarter of 2020-21 fiscal.

Max Healthcare Institute: The medical and healthcare player said its profit after tax increased by 58 per cent to Rs 172 crore for the fourth quarter ended March 2022. The company had reported a net profit of Rs 109 crore for the January-March quarter of 2020-21 fiscal.

Deepak Fertilisers: The agrochemical firm reported a 144.30 per cent jump in consolidated profit after tax (PAT) at Rs 282.91 crore for the quarter ended March 2022. The company's PAT stood at Rs 115.80 crore during the corresponding quarter of 2020-21.

Religare Enterprises: The Non-banking financial services company reported widening of consolidated loss to Rs 588 crore for the March quarter. The debt-ridden company had posted a net loss of Rs 67 crore in the same period last fiscal. The total income of the company on a consolidated basis increased to Rs 955.56 crore during the quarter. Open / Comment

2022-05-25 13:42:53 LIC to declare financial results for FY22 on May 30

It is informed that a meeting of the Board of Directors of the Corporation is scheduled to be held on May 30, 2022, LIC said in a regulatory filing on Tuesday.
The board of directors of the state-owned Life Insurance Corporation of India (LIC) is scheduled to meet at the end of this month to declare the financial results for the fiscal year ended March 2022.

It is informed that a meeting of the Board of Directors of the Corporation is scheduled to be held on May 30, 2022, LIC said in a regulatory filing on Tuesday.
The insurance behemoth, which was listed on the bourses earlier this month on May 17, said the board will consider and approve the audited financial results (standalone and consolidated) for the quarter and year ended March 31, 2022.

The meeting will also consider payment of dividend, if any, LIC said.

The much sought-after IPO (initial public offer) of LIC made its debut at around 8 per cent less than its issue price, in a choppy market condition mainly because of the geopolitical tensions arising out of the Russia-Ukraine war. LIC shares were listed 8.11 per cent discount at Rs 872 per share on NSE on May 17, as against its issue price of Rs 949 per share.

The LIC scrip was trading 1.12 per cent up at Rs 826 apiece on BSE.

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2022-05-25 09:11:43 News Today:

Sugar stocks: The government imposed restrictions on sugar exports from June 1, a move aimed at increasing availability of the commodity in the domestic market and curbing price rise. "Export of sugar (raw, refined and white sugar) is placed under restricted category from June 1, 2022 onwards," the Directorate General of Foreign Trade (DGFT) said.

Grasim Industries: The Aditya Birla Group firm reported a 55.56 per cent increase in its consolidated net profit at Rs 4,070.46 crore for the fourth quarter ended March 31, 2022. The company had posted a net profit of Rs 2,616.64 crore during the January-March quarter of 2020-21.

Dr Reddy's Laboratories: The drug maker said it along with Senores Pharmaceuticals, Inc has launched Ketorolac Tromethamine tablets, used for managing severe pain, in the US market. The product is a therapeutic generic equivalent of the reference listed drug Toradol tablets.

Bayer CropScience: The global pharma and chemicals major reported a more than twofold jump in profit to Rs 152.7 crore for the quarter ended on March 31, 2022, compared to the same period of the previous financial year. The company's profit stood at Rs 61.9 crore during the corresponding period of 2020-21.

Muthoot Finance: The gold loan lender said it will raise up to Rs 300 crore through a public issue of bonds. Announcing its 27th series of public issue of secured redeemable Non-Convertible Debentures (NCDs) of face value Rs 1,000 each, it said the issue comprises base issue size of Rs 75 crore with an option to retain oversubscription up to Rs 225 crore.

GMR Infrastructure: DVI Fund Mauritius offloaded shares of the airport service provider for Rs 624.38 crore through an open market transaction by selling 17.03 crore shares of the company at an average price of Rs 36.35 apiece.

Metropolis Healthcare: The diagnostic chain said its consolidated net profit has declined by 34 per cent to Rs 40 crore for the fourth quarter ended March. The company had reported a net profit of Rs 61 crore in the January-March period of previous fiscal.

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2022-05-24 08:15:26 News Today:

Delhivery: The new age logistics company will make its Dalal Street debut on Tuesday. The company's Rs 5,235 crore initial public offering (IPO) was open for subscription between May 11-13 as it sold its shares in the range of Rs 462-487. The issue received a muted response from the investors.

Venus Pipes and Tubes: The manufacturer of the steel pipes will also be listed on bourses on Tuesday after its Rs 165.42 crore IPO closed on May 13. The company sold its shares in the range of Rs 310-328 during the primary stake sale. The issue had received a strong responses from the investors.

Maruti Suzuki India: The largest carmaker in India will acquire an equity stake of 12.09 per cent in Sociograph Solutions Pvt Ltd (SSPL) for about Rs 2 crore. SSPL is an artificial intelligence (AI) software company, specialised in visual AI platforms.

Marico: The FMCG major said it has acquired a majority 54 per cent stake in the digital-first healthy breakfast and snacks brand True Elements for an undisclosed amount. The homegrown firm has acquired a 54 per cent equity stake in HW Wellness Solutions, which owns brand True Elements, through primary infusion and secondary buyouts.

Zomato: The online food delivery platform reported widening of its consolidated net loss at Rs 359.7 crore in the fourth quarter ended March 2022, impacted by higher expenses. The company had posted a consolidated net loss of Rs 134.2 crore in the same period of the previous fiscal.

Bharat Electronics: The defence sector play repored a 16 per cent drop in the net profit for March quarter to Rs 1140 crore. Revenue for the quarter fell 9 per cent from a year ago to Rs 6,320 crore.
The Indian Hotels Company: The hotel chain is eyeing to build a portfolio of 300 hotels and strengthen and scale up new businesses, including Qmin, 7Rivers, ama Stays & Trails, under its Ahvaan 2025.

Natco Pharma: The drug maker said US-based FMC Corporation has filed a patent suit against it in the Delhi High Court. The company would like to update that FMC Corporation has filed a suit for a Process Patent IN 298645 in the Delhi High Court today.

The Ramco Cements: The cement products firm reported a decline of 45.22 per cent in consolidated net profit at Rs 118.27 crore for the fourth quarter ended March. The company had posted a net profit of Rs 215.92 crore during the March quarter of the previous fiscal.

Patel Engineering: The construction company reported a Rs 33.58 crore consolidated net profit in the March quarter, boosted by higher income. The company had reported a loss of Rs 145.95 crore in the January-March quarter of 2020-21 fiscal.

Best Agrolife: The agrochemical firm reported a nearly three-fold jump in its net profit at Rs 104.76 crore in FY 2022. Its net profit stood at Rs 37.08 crore in the 2020-21 financial year.

Olectra Greentech: The electric mobility player said it has bagged the biggest ever order worth Rs 3,675 crore for supplying 2,100 electric buses from Brihanmumbai Electric Supply & Transport (BEST). Olectra Greentech has bagged the biggest ever order in its history for 2,100 electric buses from BEST,"

Jyothy Laboratories: Nalanda India Equity Fund bought FMCG company's shares worth Rs 96 crore through an open market transaction. According to bulk deal data available with BSE, Nalanda India Equity Fund purchased 62,00,000 shares at an average price of Rs 154.98 apiece, taking the transaction size to Rs 96.08 crore.

Sintex Industries: The textiles maker reported narrowing of consolidated net loss to Rs 119.30 crore for fourth quarter ended March 2022. The company had incurred a net loss of Rs 144.05 crore during January-March period a year ago. Open / Comment

2022-05-22 11:58:26 Photo from Rana Open / Comment

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