Ethos Ltd Sets the Clock for Growth with Massive ₹4.10 Billion Rights Issue

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Ethos Ltd, the foremost luxury watch retailer in India, has announced board approval of a rights issue to raise up to ₹4.10 billion, representing a major step to enhance its capital base and support future growth strategies. The rights issue, approved at a recent board meeting, comes on the heels of Ethos’s continued expansion and strong brand partnerships as further affirmation of its desire to grow its position in the premium retail space.

Key Highlights

Rights Issue Approved: Ethos Ltd’s board approved a rights issue that will raise up to ₹4.10 billion which will allow existing shareholders to subscribe to the new shares in proportion to their holdings.
Growth and Expansion: Proceeds from the offering will help support Ethos’s ongoing expansion plans, which include growing its number of boutiques and exclusive brand partnerships. The Company added five new stores in Q3 FY25 and 13 stores over the first nine months, expanding its store footprint to a total of 73 stores, with another six planned by the end of FY25.
Strong Market Position: Ethos has approximately 13% market share in the premium and luxury watch retail sector in India and 20% market share in the exclusive luxury watch sector, making it the largest retailer in India.
Recent Financial Results: The board also approved recent quarterly and fiscal year audited financial results for the period ending March 31, 2025 that indicate continued profitability and operating momentum for the Company.
Strategic Investment into Subsidiary: Alongside the rights issue, Ethos is also investing into its wholly owned subsidiary, Ethos Lifestyle Private Limited, via a rights offering to solidify their portfolio and market reach.
Strong Voting Results: Recently Ethos also completed a postal ballot in which the voting results showed strong support for the Board’s resolutions on this offering.

What’s Next?

Ethos’s rights offering is expected to open shortly, and they will provide further information concerning pricing and entitlement to shareholders. The rights issue should be interpreted as a step by Ethos to ensure they have capital to enable them to continue to grow operations and expand their market share in the luxury retail segment.

"This rights issue will provide Ethos with the necessary capital to accelerate its expansion strategy while reinforcing its leadership position in the luxury watch segment,” said a Company spokesperson.

Source: The Economic Times, Moneycontrol, Screener