Ethos Limited has informed the Exchange about dilution of stake in Ethos Lifestyle Private Limited (formerly RF Brands Private Limited).
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Awaiting price reaction for this filing.
Ethos Limited's shareholding in its subsidiary Ethos Lifestyle Private Limited (formerly RF Brands Private Limited) has been diluted from 95.00% to 75.05%. The dilution happened because the subsidiary raised ₹179.50 crores through a preferential issue of shares to identified investors who are not related to the promoter group. Ethos Lifestyle continues to be a subsidiary of the company (not an associate). The subsidiary was incorporated in February 2024 and had zero revenue in FY24-25, with a net worth of just ₹5.89 crore (0.60% of Ethos Limited). No consideration was received by Ethos Limited for this dilution.
This is a subsidiary-level fund raise, not a promoter-level stake sale, so it does not directly impact Ethos Limited's promoter holding or listed-entity shareholding. However, the parent has given up ~20% economic interest in a subsidiary for no cash inflow. The ₹179.50 crore raise could fund future growth of the subsidiary, but it currently has no revenue, so the value-add is yet to be seen.