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 stake in its subsidiary Ethos Lifestyle Private Limited has been diluted from 100% to 95% following a preferential allotment of shares by the subsidiary. The shares were issued to promoters Mr. Yashovardhan Saboo and Mr. Pranav Shankar Saboo, which means the promoters have personally infused capital into this subsidiary. As a result, Ethos Lifestyle ceases to be a wholly owned subsidiary but remains a subsidiary, effective July 16, 2025. The subsidiary was incorporated only in February 2024 and contributed NIL revenue and just ₹5.89 crore (0.60%) to Ethos Limited's net worth in FY 2024-25. The transaction is a related party deal, but the shares were allotted at a price based on an independent valuation, keeping it at arm's length.
This is a minor, non-material change — the diluted subsidiary contributes nothing to revenue and only 0.60% to net worth. No consideration was received by Ethos Limited, and the company did not lose any value. Shareholders are unlikely to see any meaningful impact on the stock.