homemarket Newsstocks NewsEthos shares make a weak Dalal Street debut as shares list at discount to issue price

Ethos shares make a weak Dalal Street debut as shares list at discount to issue price

By Sandeep Singh  May 30, 2022 4:16:19 PM IST (Updated)

Ethos IPO listing: Ethos shares began their journey in the secondary market at a discount of up to six percent to the issue price.

Ethos shares made a weak debut in the secondary market on Monday, with the stock listing at a discount to the issue price. On NSE, the stock of the luxury and premium watch retailer listed at Rs 825 apiece, a discount of Rs 52 or six percent to its issue price of Rs 878.

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On BSE, Ethos began its journey at Rs 830 apiece, a discount of Rs 48 or 5.5 percent.
The stock ended the listing day at Rs 802.6 on BSE and Rs 801.4 on NSE — a discount of nearly nine percent.
The listing was much worse than the trend seen in the grey market — an unofficial market for unlisted securities — in the past few days.
Dealers had said Ethos was at a discount of around Rs 5 earlier on Monday.
DateGrey market premium (in rupees)
May 28+/- 5
May 27+/- 5
May 26+/- 5
May 25+/- 5
May 24+/- 5
May 23+/- 10
May 21+/- 10
May 20+/- 10
May 19+/- 10
May 18+/- 10
(Source: IPO Watch)
"Ethos is expected to make a flat listing debut on the bourses on account of a muted response from participants due to rich pricing and unfavourable market conditions," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com. 
The Ethos IPO to raise up to Rs 472 crore saw an overall subscription of 104 percent the shares on offer.
CategorySubscriptionPortion reserved
Qualified institutional buyer1.1 times50%
Retail investor84%15%
Non-institutional investor1.5 time35%
The initial share sale, which was a combination of fresh issuance and an offer for sale (OFS), was open for bidding from May 18 to May 20.
Potential investors could bid for Ethos shares in a range of Rs 836-878 apiece in multiples of 17. At the upper end of the price band, one lot is worth Rs 14,926.
The listing of Ethos shares on BSE and NSE comes amid wild swings on Dalal Street, though benchmark indices managed to scale three-week closing highs on Friday.
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