Ethos shares sink 9% over issue price on debut, 1.1 mn shares change hands

The poor listing day performance follows lukewarm response to the company's IPO, which had managed to scrape through with just 1.03% subscription

Luxury watch retailer Ethos’ had a disappointing stock market debut with its stock finishing nearly 9 per cent below its issue price. Shares of the company closed at Rs 803, down Rs 75, or 8.6 per cent, over the IPO price of Rs 878. The stock hit a high of Rs 840 and a low of Rs 774 on the BSE.

The poor listing day performance follows lukewarm response to the company’s initial public offering (IPO), which had managed to scrape through with just 1.03 per cent subscription. The retail investor portion of the issue was subscribed 82 per cent, high networth individual portion was covered 1.48 times and institutional investor category received 1.06 times subscription.

Ethos’ IPO consisted of fresh fund-raise of Rs 375 crore and an offer for sale of Rs 97.3 crore.

Based annualised earnings per share of Rs 9.13 for 2021-22, Ethos currently trades at a price-to-earnings multiple of 88 times and has a market cap of Rs 1,874 crore.