Metro Brands 'IPO' fully subscribed on the final day of the issue
15 December 2021, Mumbai:
The initial public offer (IPO) of Metro Brands was fully subscribed on the final day of the issue. Metro Brands is backed by Rakesh Jhunjhunwala. The poor response is reminiscent of another Jhunjhunwala-backed issue that came last month –Star Health.
The issue also saw an equally poor response from investors. It was eventually subscribed to 79 percent.
Though there is still hope for Metro Brands as QIB investors, who usually come on the last day, may bid in enough numbers to help it sail through. The issue has majorly garnered positive recommendations on the issue but a few brokerages are skeptical over aggressive pricing, the impact of the Covid pandemic on the business, and high dependence on third party brands.
The company is one of India's largest pan India footwear retailers with a strong brand appeal. It is available at a reasonable valuation as compared to its peers. The company is selling shares in the range of Rs 485 to Rs 500 apiece.
At the upper range of the price band, the company will fetch Rs 1,367.51 crores via its initial stake sale.
Metro Brands retails footwear under its own brands of Metro, Mochi, Walkway, Da Vinchi, and J. Fontini as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop, which complement their in-house brands.
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