Luxury Time is an SME IPO that aims to raise Rs 18.74 crores from the primary market. The issue is a combination of 0.18 crore fresh shares, aggregating to Rs 15 crores and an offer for sale of 0.05 crore shares amounting to Rs 3.74 crores.
Luxury Time SME IPO details
The company set the IPO price band between Rs 78 – 82 per equity share. The IPO opened for subscription on December 04, and it will close on December 08.
Luxury Time SME IPO: Allotment and listing
The allotment for the SME IPO shares is expected to be finalised on December 9, while the listing on the exchange, BSE SME, is likely to be on December 11, as per the tentative schedule.
Luxury Time SME IPO: Lot size
A retail application needs to be of a minimum of 1,600 lots of 3,200 shares, which amounts to Rs 2,62,400. The minimum lot size investment for a High Networth Individual is 3 lots of 4,800 shares, totalling Rs 3,93,600.
Luxury Time SME IPO: Key risks
Significant dependence on single Swiss supplier
The company’s business relies significantly on one Swiss company for the procurement of a substantial majority of its luxury watches (such as TAG Heuer, Zenith, Bomberg, and Exaequo) and tools and machinery (like Bergeon and Horotec). The purchases from this top supplier constituted 49.15% to 65.48% of total purchases across FY23 to Q2FY26. Also, the company don’t have any definitive long-term plans with this supplier.
High concentration of revenue from top 10 customers
The company’s operations are highly dependent on its top ten customers, and the loss of any major customer could adversely affect sales. The top ten customers contributed a significant portion of the total revenue from operations:
| Time | Q2 FY26 | FY25 | FY24 | FY23 |
| Contribution of top 10 customers in revenue | 79.26% | 68.13% | 73.09% | 73.01% |
Luxury Time SME IPO: Purpose of raising funds
Out of the total fresh issue of Rs 15 crore, the company will be using Rs 2.82 crore for funding the capital expenditure towards setting up 4 new retail stores. The company will use Rs 9 crore for funding the working capital requirement. However, the point needs to be noted that Luxury Time didn’t provide information on where it will be using the remaining Rs 3.18 crore of the fresh proceeds.
Luxury Time SME IPO: Financials
At the upper price of Rs 82, the Price-to-Earnings ratio based on the FY25 Basic and Diluted EPS of Rs 6.96 is supposed to be 11.78 times. To give a comparison, the listed entity Ethos has a P/E ratio of 73.78.
The company’s net profit in the last three financial years has been positive. In FY23, the company posted a net profit of Rs 2.58 crore, in FY24 it was Rs 2.01 crore, and Rs 4.29 in FY25. However, the Earnings Per Share (EPS) is on a continuous downtrend in the same time frame. The company had an EPS of Rs 29.58 in FY23, Rs 23.05 in FY24, and fell significantly to Rs 6.68 in FY25.
Luxury Time SME IPO: Book runner and registrar
GYR Capital Advisors is working as the book-running lead manager for the SME IPO, and MAS Services is the registrar of the issue. The Market Maker of the company is Giriraj Stock Broking.
About Luxury Time
Luxury Time is engaged in the distribution, marketing, retailing, and after-sales servicing of Swiss luxury watches, along with the distribution of watch service-related tools and equipment in India. Incorporated in 2008, the company is based in New Delhi. It is supported by a team of professionals with expertise in luxury watch distribution, retail management, precision servicing, and brand marketing.
