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Metro Brands IPO: The initial public offering (IPO) of footwear retailer Metro Brands opened for subscription on Friday, December 10, 2021. The offer got 27 per cent subscribed by the end of the first day of bidding.
It received total bids for 51,06,330 shares across both the stock exchanges against 1,91,45,070 shares on offer, data from BSE showed.
The Rs 1,367.5 crore Metro Brands IPO will be available for subscription till Tuesday, December 14, 2021, and the price band of the company has been fixed at Rs 485-500 per share.
Metro Brands is a footwear retailer, which targets the economy, mid and premium segments in the Indian footwear market. It opened its first store under the ‘Metro’ brand in Mumbai in 1955 and has since evolved into a one-stop-shop for all footwear needs. It is backed by ace investor Rakesh Jhunjhunwala.
The IPO comprises a fresh issue of equity shares worth Rs 295 crore and an offer for sale of 2.14 crore equity shares by promoters and other shareholders.
Through the IPO, the promoters of Metro Brands will offload a nearly 10 per cent stake. At present, the promoters and promoter group hold an 84 per cent stake in the company.
The net proceeds from the fresh issue will be used towards expenditure for opening new stores of the company, under the ‘Metro’, ‘Mochi’, ‘Walkway’ and ‘Crocs’ brands and for general corporate purposes.
Presently, Metro Brands has 598 stores in 136 cities spread across India.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors.
Investors who wish to subscribe to Metro Brands IPO can bid in a lot of 30 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 15,000 to get a single lot of Metro Brands. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Wednesday, December 15, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book running lead managers to the offer while Link Intime India is the registrar of the issue.
Before heading into the IPO, Metro Brands raised over Rs 410 crore (Rs 4,10,25,15,000) from 28 anchor investors in lieu of 82,05,030 equity shares at Rs 500 each, data from the stock exchanges showed.
The anchor investors include the likes of Societe Generale, Goldman Sachs, Abu Dhabi Investment Authority, HDFC Life Insurance Company, SBI Life Insurance Co Ltd, Tata AIA Life Insurance Co Ltd, HDFC Mutual Fund (MF), Aditya Birla Sun Life MF, Sundaram MF and ICICI Prudential MF.
The share allotment is likely to take place on Friday, December 17, 2021, and the shares are expected to be listed on Wednesday, December 21, 2021, according to the timeline given in the red herring prospectus (RHP).
