20 May , 2022 By : Kanchan Joshi
Ethos IPO: The public issue worth Rs472.29 crore opened for subscription on 18th May and it will remain open for bidding till 20th May 2022, which means investors have just one day left to apply for the IPO (Initial Public Offering). After two days of subscription opening, the public issue has been subscribed 0.44 times whereas its retail portion has been subscribed 0.68 times. Meanwhile, Ethos shares have become available for trade in grey market from Thursday. According to market observers, shares of Ethos Limited are available at a premium of Rs7 per equity share.
Ethos IPO GMP today
Market observers said that Ethos IPO grey market premium (GMP) today is Rs7, which is Rs13 lower from its Thursday evening's grey market premium of Rs20. They said that slump in Ethos IPO GMP can be attributed to sharp selling in secondary market on Thursday. However, they maintained that further continuance of the negative sentiment on Dalal Street may lead to tepid response from the investors as today will be the last day to apply for the public offer.
What this GMP mean?
Market observers said that Ethos IPO GMP today is Rs7, which means grey market is expecting that Ethos IPO listing would be around Rs885 ( Rs878 Rs7), which is at par with its price band of Rs836 to Rs878 per equity share.
However, stock market experts said that grey market is not an ideal indicator about an IPO. They advised investors to look at the financials of the company as it gives concrete information about the fundamental status of the company.
Giving subscribe tag for long term, Astha Jain, Senior Research Analyst at hem Securities said, "Company being leading luxury watch Omnichannel retail player of India has access to a large base of luxury Customers. Company enjoys leadership position in an attractive luxury watch market with early mover advantage in certified pre-owned business. Also Ethos being Founder-led company is supported by a professional management team. With strong growth prospects, we believe company to be candidate for long term investment purpose. Hence , we recommend “Long Term Subscribe" on issue."
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