Luxury Time, a luxury watch distributor, has launched its SME IPO, priced between Rs 78–82 per share.
The IPO aims to raise Rs 18.74 crore, including Rs 15 crore from fresh shares and Rs 3.74 crore from the offer for sale.
The IPO opened on December 4 and will close on December 8.
IPO Allotment, Listing, and Lot Size
The allotment of shares is expected on December 9, with listing on BSE SME likely on December 11.
Retail Investors: Minimum 1,600 lots of 3,200 shares, totaling Rs 2,62,400.
High Networth Individuals (HNIs): Minimum 3 lots of 4,800 shares, totaling Rs 3,93,600.
Key Risks to Consider
Dependence on a Single Swiss Supplier
Luxury Time heavily relies on one Swiss supplier for its watches (TAG Heuer, Zenith, Bomberg, Exaequo) and tools (Bergeon, Horotec).
Purchases from this supplier accounted for 49% to 65% of total purchases between FY23 and Q2FY26.
The company currently has no long-term agreement with this supplier.
High Revenue Concentration
The company depends significantly on its top 10 customers, who contributed up to 79% of revenue in Q2 FY26.
Losing any major customer could impact sales.
Purpose of the IPO Funds
Out of the Rs 15 crore fresh issue:
Rs 2.82 crore will go towards setting up 4 new retail stores.
Rs 9 crore will fund working capital requirements.
The use of the remaining Rs 3.18 crore has not been disclosed.
Financial Snapshot
At the upper price of Rs 82, the Price-to-Earnings (P/E) ratio based on FY25 EPS of Rs 6.96 is 11.78x, compared to listed peer Ethos at 73.78x.
Profit and EPS Trends:
FY23: Net profit Rs 2.58 crore, EPS Rs 29.58
FY24: Net profit Rs 2.01 crore, EPS Rs 23.05
FY25: Net profit Rs 4.29 crore, EPS Rs 6.68
While net profits have been positive, EPS shows a continuous decline.
About Luxury Time
Founded in 2008 and based in New Delhi, Luxury Time is engaged in distribution, retail, marketing, and after-sales servicing of Swiss luxury watches in India.
The company also distributes watch service-related tools and equipment.
Its team has expertise in luxury watch retail, precision servicing, and brand marketing.
Book Running Lead Manager: GYR Capital Advisors
Registrar: MAS Services
Market Maker: Giriraj Stock Broking
This simplified format highlights key points, risks, and financials, making it easier for readers to understand and decide about the IPO.
