IPO Season: Rakesh Jhunjhunwala-Backed Metro Brands To Open IPO On Dec 10, Check Details
The offer consists of a fresh issue of Rs 295 crore and an offer for sale aggregating to Rs 1,072.5 crore by promoters and other shareholders.
Rakesh Jhunjhunwala-backed multi-brand footwear retail chain Metro Brands’ Rs 1,367.5 crore initial public offering (IPO) has set a price band at Rs 485-500 per equity share.
The offer consists of a fresh issue of Rs 295 crore and an offer for sale (OFS) aggregating to Rs 1,072.5 crore by promoters and other shareholders.
Currently, the promoters and promoter group owns an 84 per cent stake in the company. The company's promoters will sell a nearly 10 per cent stake through OFS.
The issue will open for subscription from December 10 to December 14.
An investor can bid for a minimum of 30 equity shares and a maximum of 390 shares (in the multiples of 30 shares). For a single lot, an investor will have to pay Rs 15,000, and their maximum investment can go to Rs 1.95 lakh for 13 lots.
The net proceeds generated from the share sale will be employed in opening new stores under brands Metro, Mochi, Walkway and Crocs; and for general corporate purposes.
Fifty per cent of the offer is earmarked for qualified institutional buyers, 35 per cent for retail investors, and the rest 15 per cent for non-institutional investors.
The bidding for anchor investors will take place on December 9. The allotment of shares shall conclude on December 17, 2021, and the firm will debut on Indian bourses on December 22. Link Intime India Private Ltd will act as the registrar to the IPO.
The company has 598 stores across 136 cities in 30 states and UTs in India as of September 2021.
The company in FY21 reported a net profit of Rs 64.62 crore, down from Rs 160.57 crore in FY20 due to Covid-19 induced lockdowns. Revenue also saw a decline to Rs 800.06 crore from Rs 1,285.16 crore in the same period.
The retailer booked a profit of Rs 43.07 crore in the trailing six-month period ended September 2021, versus a loss of Rs 43.11 crore in the year-ago period. Revenue rose to Rs 456 crore from Rs 176.54 crore in the same period.
Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book running lead managers to the share sale.