Luxury Time Ltd. — a distributor and retailer of Swiss luxury watches in India — has launched an SME-IPO to raise ₹18.74 crore. The IPO opened on December 4 and will remain open for subscription through December 8, 2025.
📈 Offer Details
- Price band: ₹78 – ₹82 per share.
- Issue comprises a fresh issue of ₹15.00 crore and an offer-for-sale (OFS) of ₹3.74 crore.
- Minimum application (retail) — 3,200 shares (i.e. 2 lots), which corresponds to around ₹2.62 lakh at the upper end.
- Tentative listing date: December 11, 2025, on the BSE SME platform.
🏭 Business Profile & What It Does
Luxury Time is an authorized distributor for leading Swiss watch brands in India — including TAG Heuer, Zenith, Bomberg, and Exaequo — along with distribution of watch-service tools and equipment from Swiss manufacturers.
The firm runs a pan-India retail presence with over 70 points-of-sale (POS), including mono-brand boutiques, multi-brand outlets and an online sales channel, plus after-sales servicing via service-centres and authorised repair partners.
📊 Financial Snapshot & Valuation
- For FY25, revenue was ₹60.78 crore (up from ₹50.59 crore in FY24) and net profit jumped to ₹4.29 crore.
- Based on the upper band price (₹82) and FY25 earnings (EPS ₹6.96), the IPO values the company at a P/E multiple of roughly 11.8× — which appears modest compared with peers in the luxury-retail/distribution space.
🎯 Use of Proceeds
Proceeds from the fresh issue will fund:
- Setting up four new retail stores (capex ~ ₹2.82 crore)
- Working-capital needs (~ ₹9.00 crore) and general corporate purposes.
⚠️ Key Risks & What Investors Should Watch
- Heavy dependence on a single Swiss supplier for major watch procurements — 49–65% of purchase volume over recent years — with no long-term supply agreements. Supply disruption or supplier issues could impact business significantly.
- High customer concentration: revenue heavily skewed towards a small number of clients — top 10 customers contributed ~79% of revenue in Q2 FY26, a pattern seen in prior years too. Losing a major customer could hit revenues hard.
- Discretionary consumption nature of luxury-watches means demand may fluctuate with macro conditions, consumer sentiment, or import duty/tax changes.
🧑💼 What Kind of Investors It May Suit
- Those comfortable with SME-IPO risk and willing to hold for medium term (2–3 years) for retail expansion to play out.
- Investors seeking value — IPO appears moderately valued relative to earnings, rather than a high-valuation “hype play.”
- Diversified-portfolio investors who can accept volatility — but prefer a business with established brand partnerships, retail presence and growth potential in luxury segment.
