The initial public offering (IPO) of Luxury Time Limited, a prominent distributor of Swiss luxury watches in India, opened for subscription on Thursday, December 4, and will close on Monday, December 8. The company has set its price band at ₹78 to ₹82 per equity share, with each share having a face value of ₹10.
Strong Investor Response on Day One
The public issue received a robust response from investors on its first day. According to data from chittorgarh.com, the Luxury Time IPO subscription status reached 3.61 times by the end of the first bidding day. The retail investor segment showed particularly strong interest, getting subscribed 6.30 times. The Non-Institutional Investors (NII) portion was booked 2.11 times, while the Qualified Institutional Buyers (QIB) category was yet to see bids.
In total, investors placed bids for 52,49,600 shares against the 14,52,800 shares on offer on day one. The minimum application size is for 1,600 shares, requiring a minimum investment of ₹1,24,800 at the lower price band and ₹2,62,400 at the upper end.
Company Profile and Financial Performance
Headquartered in New Delhi, Luxury Time Limited operates in the premium segment of the watch industry. The company's core activities include:
- Distribution and marketing of Swiss luxury watches (B2B)
- Direct-to-consumer (D2C) and e-commerce sales
- After-sales service for luxury watches
- Branding, PR, and marketing support
- Distribution of tools and machinery for watch servicing
The company is backed by a skilled team with expertise in luxury retail and precision servicing. Financially, Luxury Time reported impressive growth in FY25, with revenue increasing by 20% to ₹60.78 crore and profits doubling to ₹4.29 crore. For the first half of the current fiscal year FY26, the company posted revenue of ₹24.91 crore and a profit of ₹2.01 crore.
IPO Structure and Fund Utilization
The Luxury Time IPO comprises a fresh issue of ₹15 crore and an offer for sale (OFS) component of ₹3.74 crore. Prior to the IPO opening, the company allocated 6.17 lakh shares to anchor investors on December 3, raising ₹5.06 crore.
The share allocation is structured with 45% reserved for Qualified Institutional Buyers (QIBs) and 31.86% for retail investors. The proceeds from the fresh issue will be strategically used for:
- Establishing four new retail outlets (₹2.82 crore)
- Meeting working capital requirements (₹9 crore)
- General corporate purposes
GYR Capital Advisors is the book-running lead manager for the issue, MAS Services is the registrar, and Giriraj Stock Broking is the market maker.
Grey Market Premium and Listing Prospects
The grey market premium (GMP) for the Luxury Time IPO is currently ₹50. This indicates strong investor sentiment and anticipation of a healthy listing gain. Based on the upper price band of ₹82 and the current GMP, the estimated listing price is around ₹132 per share, which would represent a potential gain of approximately 60.98%.
Market analysts note that the GMP has been trending upward, suggesting a positive outlook for the stock's debut on the exchanges. The grey market premium reflects the premium investors are willing to pay over the issue price in unofficial trading before the listing.
While the strong subscription numbers and high GMP point towards a successful IPO, investors are advised to consider the company's fundamentals, future growth plans in the luxury retail segment, and overall market conditions before making an investment decision.
