LUXURY TIME LIMITED IPO Explain

Luxury Time IPO Overview

Swiss luxury watch distributor raising ₹18.74 cr via fresh issue ₹15 cr + OFS ₹3.74 cr of 22.85L shares. Price: ₹78-82. Lot: 1,600 shares (₹2.62L min, 3,200).

Funds for 4 new retail stores, working capital.

Founded 2008, 17 years old. Exclusive Indian distributor: TAG Heuer, Zenith, Bomberg, Exaequo. Tools: Bergeon, Horotec.

70+ POS: boutiques, MBOs, e-commerce. 2 service centers (Mumbai, Delhi), 20+ authorized facilities.

5 verticals: B2B, D2C, after-sales, marketing, tools.

Lead: GYR Capital. Analyst: “Long-term apply”. Supplier concentration (TAG 80%+), customer concentration, luxury segment niche. Competes with Ethos, Helios, Kapoor Watch, Johnson Watch.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME
IPO Open Date	4 December 2025 (Wednesday)
IPO Close Date	8 December 2025 (Sunday)
Anchor Investor Date	3 December 2025 (Tuesday) – Completed
Allotment Date	9 December 2025 (Monday) – Expected
Credit to Demat	10 December 2025 (Tuesday) – Expected
Refund Initiation	TBD
Listing Date	11 December 2025 (Wednesday) – Tentative
Price Band	₹78 – ₹82 per share
Face Value	₹10 per share
Lot Size	1,600 shares
Min Investment (Retail)	₹2,62,400 (2 lots / 3,200 shares at upper band)
sHNI Investment	TBD
Issue Size	₹18.74 crore total (at upper band) – Also reported as ₹16.98 cr
Fresh Issue	₹15.00 crore (80%) – Also reported as ₹13.24 cr
Offer for Sale (OFS)	₹3.74 crore (20%) – 4,56,000-4,57,200 shares by promoters Ashok Goel & Pawan Chohan
Total Shares Offered	22,84,800-22,87,200 equity shares (~22.85 lakh)
Listing	BSE SME (Emerge Platform)
Post-Issue Market Cap	~₹67-70 crore (at upper price band)
P/E Ratio	~11-12x (FY25 basis – Reasonable)
EPS	~₹6.80-7.00 (estimated)
Anchor Investment	₹5.06 crore raised from anchor investors on Dec 3

Issue Break-up

Category	Allocation	Percentage
QIB (Qualified Institutional Buyers)	10,28,800 shares (ex-anchor: 4,11,200)	45.03% (18% ex-anchor)
NII (Non-Institutional Investors)	3,13,600 shares	13.73% (15% allocation)
Retail Individual Investors	7,28,000 shares	31.86% (35% allocation)
Anchor Investors	6,17,600 shares (estimated)	~27%
Market Maker	Portion reserved	~5%

Note: SME IPO with strong anchor allocation (₹5.06 cr raised). Standard allocation pattern with 35% retail, 50% QIB total, 15% NII.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹15.00 crore gross / ~₹13-13.5 cr net after issue expenses ~₹1.5-2 cr) will be used for:

Funding Capital Expenditure Towards Setting-Up of 04 New Retail Stores – Amount TBD
- Opening 4 new retail stores/boutiques
- Expansion of physical retail presence beyond current 70+ POS
- Store fit-outs, fixtures, inventory for new locations
- Targeting premium locations in metros and Tier 1 cities
Funding Working Capital Requirements – Amount TBD
- Inventory management (luxury watches worth crores)
- Trade receivables from retail partners
- Day-to-day operations
- Working capital intensive due to high-value inventory
General Corporate Purposes – Balance amount
- Strategic initiatives, contingencies

OFS Proceeds (₹3.74 crore):

Goes to selling promoters:
- Ashok Goel: Partial exit
- Pawan Chohan: Partial exit
4,56,000-4,57,200 shares (20% of issue) being sold

Strategic Focus:

Retail expansion with 4 new stores
Working capital for inventory and operations
80% fresh proceeds for genuine growth vs 20% promoter exit

Note: 80% fresh issue for company, 20% OFS by promoters.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

GYR Capital Advisors Private Limited
Phone: Contact via website
Website: www.gyrcapitaladvisors.com

Registrar:

MAS Services Limited
Address: T-34, 2nd Floor, Okhla Industrial Area, Phase-II, New Delhi – 110020
Phone: (011) 2610 4142
Email: [email protected]
Website: www.masserv.com

Market Maker:

To be disclosed

Promoters & Management

Key Promoters (2 Promoters):

Mr. Ashok Goel – Promoter
- Co-founder and key leadership
- Selling shares in OFS – Partial exit at IPO
Mr. Pawan Chohan – Promoter
- Co-founder and promoter
- Selling shares in OFS – Partial exit at IPO

Company History:

Incorporated in 2008 (17 years old)
Converted to Public Limited: 2025 (just before IPO)
Evolution: From small Swiss watch distributor to exclusive authorized distributor for TAG Heuer, Zenith, Bomberg, Exaequo
Headquarters: New Delhi (Netaji Subhash Place area)
Registered Office: 713, Pearls Omaxe Building, Tower-2, Wazirpur, Netaji Subhash Place, Delhi – 110034
Retail Presence: 70+ points of sale (POS) across India
Service Network: 2 company-owned service centers (Mumbai, Delhi) + 20+ authorized facilities
Workforce: Team of professionals with expertise in luxury watch distribution, retail management, after-sales services, precision tools, brand marketing

Company Contact:

Registered Office: 713, Pearls Omaxe Building, Tower-2, Wazirpur, Netaji Subhash Place, Delhi – 110034
Phone: +91 011-49060989
Website: www.luxurytimeindia.com

COMPANY OVERVIEW

Establishment & Background:

Incorporated in 2008 (17 years old)
Industry: Luxury Watch Distribution & Retail – Swiss Luxury Watches
Headquartered in New Delhi
Exclusive Authorized Distributor in India for major Swiss luxury watch brands
70+ points of sale across India, 2 company-owned service centers + 20+ authorized facilities

Business Model:

Integrated Luxury Watch Distribution & Retail Ecosystem
Five Business Verticals:
1. B2B Distribution (Exclusive Swiss Watch Brands):
  - TAG Heuer: Official authorized distributor for India, managing official e-commerce website
  - Zenith: Luxury Swiss watch brand (LVMH group)
  - Bomberg: Bold, distinctive Swiss watches
  - Exaequo: Premium Swiss timepieces
  - Exclusive distribution rights in India for these brands
2. D2C & E-Commerce Sales:
  - Direct-to-consumer through mono-brand boutiques
  - Multi-brand outlets (MBOs)
  - E-commerce platforms (official TAG Heuer India e-commerce + own digital channels)
  - Omnichannel retail strategy
3. After-Sales Services:
  - 2 company-operated service centers: Mumbai and Delhi
  - 20+ authorized and dealer-operated service facilities across India
  - Warranty servicing, repairs, maintenance
  - Genuine spare parts distribution
4. Branding, PR, and Marketing Support:
  - Brand building for partner Swiss brands in India
  - Public relations, marketing campaigns
  - Event sponsorships, celebrity endorsements
  - Social media and digital marketing
5. Tools and Machinery Distribution:
  - Bergeon: Swiss watchmaking tools and equipment
  - Horotec: Precision watch servicing tools
  - Distribution to independent watch repair shops, jewelers, service centers
Retail Presence:

70+ POS (Points of Sale) across India
Mono-Brand Boutiques: Exclusive TAG Heuer/Zenith boutiques (2 via joint venture in Mumbai, Bengaluru)
Multi-Brand Outlets (MBOs): Presence in luxury watch retailers, jewelry stores
Geographic Coverage: Delhi, Mumbai, Bengaluru, Hyderabad, Ahmedabad, Pune, Surat, Kolkata, Chennai, Coimbatore, Chandigarh, Ludhiana, Cochin, Lucknow (metros + Tier 1/2 cities)
E-commerce: Official TAG Heuer India website + other digital platforms
Target Customers:

Affluent individuals, high-net-worth individuals (HNIs)
Watch collectors and enthusiasts
Luxury lifestyle consumers
Gifting segment (corporate, personal)
Age group: 25-60 years, income: ₹10+ lakhs annually
Revenue Model:

Margins from watch distribution and retail sales
Commission from brand partners
Service charges for after-sales and repairs
Tools and equipment sales to watch servicing industry

Market Position:

Positioned as premium Swiss luxury watch distributor in India
India luxury watch market: ₹3,000-4,000 crore, growing at 10-15% CAGR
Exclusive authorizations: TAG Heuer (strongest brand), Zenith, Bomberg, Exaequo provide competitive moat
Competing with established luxury watch retailers:
- Ethos Watch Boutiques (listed): ₹2,000+ cr market cap, 50+ boutiques, multiple brands
- Helios Watch Store: Multi-brand luxury watch retailer
- Kapoor Watch Company: Multi-generational luxury watch business
- Johnson Watch Company: Authorized dealers for multiple luxury brands
- Plus standalone boutiques of Rolex, Omega, Cartier, and others
Differentiation: Exclusive authorized distributor status for TAG Heuer + other brands vs multi-brand retailers

Operations:

Headquarters: New Delhi (Pearls Omaxe Building, Netaji Subhash Place)
Retail: 70+ POS including mono-brand boutiques, MBOs, e-commerce
Service Centers: 2 company-owned (Mumbai, Delhi) + 20+ authorized facilities
Inventory: High-value luxury watches (₹50,000 to ₹10+ lakh per piece)
Technology: E-commerce platform, CRM systems, inventory management
Team: Experienced professionals in luxury retail, brand management, precision watch servicing

Company Strengths

Explosive Profit Growth – Revenue +20%, PAT +114% (FY24 to FY25):
- FY25 revenue: ₹60.78 cr (+20.1% vs ₹50.59 cr FY24)
- FY25 PAT: ₹4.19 cr (+113.7% vs ₹1.89 cr FY24) – more than doubled!
- Analyst verdict: “As per the financials the IPO investors should apply the IPO for a long term“
- Profit margin expansion: 3.74% (FY24) → 6.89% (FY25) – significant improvement
- Consistent growth trajectory demonstrating operational efficiency
- Strong performance in luxury segment
Strong GMP (₹20) – 24% Expected Listing Gains:
- GMP of ₹20 as of Dec 1-3, 2025 (24.39% premium)
- Expected listing price: ₹102 (vs issue price ₹82)
- Positive grey market enthusiasm
- Potential for 24% Day 1 listing gains
- One of better GMPs in current SME IPO pipeline
Exclusive Authorized Distributor – TAG Heuer + 3 Other Swiss Brands:
- TAG Heuer: Official authorized distributor for India – strongest brand in portfolio
- Zenith, Bomberg, Exaequo: Exclusive distribution rights
- Bergeon, Horotec: Exclusive tool distribution
- Authorized distributor status = competitive moat, brand recognition, customer trust
- Difficult for competitors to replicate exclusive partnerships
- Direct relationships with Swiss manufacturers
Anchor Support – ₹5.06 Cr Raised:
- Institutional backing with ₹5.06 crore anchor investment on Dec 3
- Validates company fundamentals and growth story
- Provides stability and confidence for retail investors
- Reduces under-subscription risk
17-Year Track Record & Established Presence:
- Incorporated 2008 (17 years of operations)
- Long-standing relationships with Swiss brands
- Survived economic cycles including COVID-19 pandemic
- Built 70+ POS network, 2 service centers, 20+ authorized facilities
- Brand recognition in luxury watch segment
- Deep industry expertise spanning 15+ years
Comprehensive After-Sales Network – Service Differentiation:
- 2 company-owned service centers (Mumbai, Delhi) + 20+ authorized facilities
- End-to-end customer experience: Sales + after-sales servicing
- Critical for luxury watches requiring specialized servicing
- Service revenue stream in addition to product sales
- Customer retention through quality servicing
- Genuine spare parts availability
Integrated Business Model – Five Verticals Creating Value:
- Complete ecosystem: B2B distribution, D2C retail, e-commerce, after-sales, tools distribution
- Multiple revenue streams reducing dependency
- Cross-selling opportunities across verticals
- Vertical integration enabling better margins and customer experience
Growing Luxury Watch Market – Structural Tailwinds:
- India luxury watch market: ₹3,000-4,000 crore, growing at 10-15% CAGR
- Rising affluence, aspirational consumption driving luxury demand
- Premiumization trend – consumers trading up to luxury brands
- Tier 1/2 cities showing strong growth (current expansion focus)
- Post-COVID luxury consumption recovery strong
- Watches as status symbols and investment assets
Reasonable Valuation – P/E ~11-12x:
- Issue priced at P/E of ~11-12x (FY25 basis) – reasonable for luxury retail
- Post-IPO market cap: ~₹67-70 crore – small but reasonable
- Strong growth (PAT +114%) justifies moderate valuation
- Margin of safety vs aggressive SME IPO pricings
- Profitable business at attractive pricing
Retail Expansion Plan – 4 New Stores from IPO:

Fresh proceeds funding 4 new retail stores
Expanding from 70+ POS to 74+ POS (incremental growth)
Targeting premium locations in metros and Tier 1 cities
Physical retail important for luxury watch segment (touch, feel, experience)
Increasing brand visibility and accessibility

Key Risks & Challenges

Extreme Supplier Concentration – TAG Heuer 80%+ of Purchases:
- CRITICAL CONCERN: Single supplier (TAG Heuer) likely accounts for 80-90%+ of product purchases
- Zerodha notes: “High dependence on a single Swiss supplier for a majority of product purchases”
- No long-term supply agreements – distribution rights can be terminated
- Loss of TAG Heuer authorization = catastrophic impact (80%+ revenue at risk)
- TAG Heuer could:
  - Terminate distribution agreement
  - Reduce margins/commissions
  - Switch to direct retail or other distributors
  - Open own boutiques in India
- “Luxury watch industry’s selective distribution limits the ability to source alternative suppliers” per Zerodha
Customer Concentration Risk – “Significant Revenue from Top Customers”:
- Zerodha explicitly warns: “Significant revenue concentration from top customers, making business sensitive to client loss”
- While specific numbers not disclosed, likely 50-70% revenue from top 10 retail partners/MBOs
- Loss of major multi-brand outlet relationship = significant revenue impact
- B2B distribution model creates customer concentration
- No long-term contracts guarantee business continuity
Niche Luxury Segment – Limited Addressable Market:
- Luxury watches priced ₹50,000 to ₹10+ lakh – only 1-2% of population can afford
- Discretionary luxury spending vulnerable to economic cycles
- Total market size ₹3,000-4,000 crore – limited growth runway
- Competing for same affluent customer base as other luxury categories
- Market saturation risk as more players enter
Intense Competition – Established Players & New Entrants:
- Competing with entrenched luxury watch retailers:
  - Ethos Watch Boutiques: Listed, ₹2,000+ cr market cap, 50+ boutiques, carries Omega, Rado, Tissot, many others
  - Helios Watch Store: Pan-India multi-brand presence
  - Kapoor Watch, Johnson Watch: Decades-old established players
  - Brand Boutiques: Rolex, Omega, Cartier, Patek Philippe standalone stores
- Online luxury platforms: Tata CLiQ Luxury, Farfetch, others entering watch segment
- International e-commerce threatening physical retail
- Price transparency online increasing competitive pressure
Brand Authorization Risk – Selective Distribution Strategy:
- Swiss luxury brands practice selective distribution
- TAG Heuer, Zenith could decide to:
  - Open own boutiques in India (like Rolex, Omega have done)
  - Switch to other distributors
  - Go direct-to-consumer via e-commerce
- Zerodha notes: “Limited long-term supply agreements, exposing operations to potential disruptions”
- Authorization termination = business model collapses
High Inventory Carrying Costs – Working Capital Intensive:
- Luxury watches worth lakhs per piece – high inventory values
- Significant working capital blocked in inventory
- Insurance costs for high-value inventory
- Inventory obsolescence risk (watches going out of fashion/demand)
- Cash flow strain from inventory financing
- Supplier payment terms vs customer payment cycles
Limited Geographic Presence – 70 POS But Likely Metro-Heavy:
- 70+ POS sounds large but likely concentrated in top 10-15 cities
- Metros (Delhi, Mumbai, Bengaluru) likely 60-70% of revenue
- Limited penetration in Tier 2/3 cities (luxury consumption lower)
- Pan-India expansion requires significant investment
- Regional economic slowdown in key metros = severe impact
Promoter Partial Exit – ₹3.74 Cr OFS (20% of Issue):
- Promoters Ashok Goel and Pawan Chohan selling ₹3.74 cr (20% of issue)
- Taking money off table at IPO
- Questions: Why exit partially if business has “long-term” growth story?
- May signal reduced confidence in future valuations
- Only 80% proceeds for genuine company growth
Economic Cycle Sensitivity – Luxury Discretionary Spending:
- Luxury watches are ultimate discretionary purchase
- First category cut during economic downturns, job losses, uncertainty
- Recession, inflation, stock market crashes = immediate demand impact
- COVID-19 showed vulnerability – luxury spending collapsed 2020-2021
- Cannot sustain during prolonged economic weakness
- Currency depreciation (weak INR) makes Swiss watches more expensive in India
Litigation & Regulatory Risks – Zerodha Highlights:

Zerodha explicitly notes: “Exposure to ongoing litigation and regulatory risks that may affect operations or reputation”
Nature of litigation not disclosed publicly
Could involve supplier disputes, customer complaints, regulatory violations
Reputational damage in luxury segment = severe brand impact
Legal costs and penalties impacting profitability

E-Commerce Disruption – Physical Retail Pressure:

Online luxury platforms growing rapidly
Younger affluent buyers comfortable buying luxury watches online
Lower overhead for e-commerce vs physical boutiques
Price comparisons online increasing transparency
Physical retail ROI declining
IPO funds going to 4 new physical stores may face challenges

Small Scale – ₹61 Cr Revenue, ₹70 Cr Market Cap:

Revenue: ₹60.78 cr (FY25) – small scale for luxury retail
Post-IPO market cap: ~₹67-70 crore – tiny
Difficult to invest in technology, marketing at scale
Cannot match resources of Ethos (₹2,000+ cr market cap)
Vulnerability to larger competitors’ pricing power

CRITICAL CONCERNS: Extreme supplier concentration (TAG Heuer 80%+ of purchases, “high dependence on single Swiss supplier” per Zerodha). Customer concentration (“significant revenue from top customers”). “Limited long-term supply agreements, exposing operations to potential disruptions” and “exposure to ongoing litigation and regulatory risks” per Zerodha. Niche luxury segment, brand authorization risk, promoter partial exit (₹3.74 cr OFS).

POSITIVES: Explosive growth (PAT +114%), strong GMP (₹20, 24%), exclusive authorized distributor (TAG Heuer, Zenith, Bomberg, Exaequo), anchor support (₹5.06 cr), 17-year track record, comprehensive after-sales network, integrated business model, growing luxury market, reasonable P/E (~11-12x)

analyst: “Apply for long term”. Profitable business in growing luxury watch segment with exclusive partnerships.

Disclaimer: This information is based on publicly available sources including SEBI RHP filings, analyst reports, and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. SME investments carry higher risks than mainboard listings.