The initial public offering IPO The IPO of Metro Brands is expected to open on December 10th, and will be backed by ace investor Rakesh Jhunjhunwala. Rakesh Jhunjhunwala's wife is the third-largest shareholder in the company, owning a 14.73 per cent stake.
Metro Brands is the second IPO of a firm backed by Rakesh Jhunjhunwala this month, followed by Star Health and Allied Insurance Company. The issue through which Metro Brand plans to raise Rs 1,368 crore will close on December 14.
The IPO comprises new issue of equity shares worth Rs 295 crore and an offer for sale of 2.14 crore equity shares by promoters and other shareholders. The promoters and promoter group hold a 84 per cent stake in the company. The company's promoters will offload a 10 per cent stake through the share sale.
The IPO's lot size is 30 shares for which one will have to spend 15,000. Retail-individual investors can apply for up to 13 lots or 390 shares by spending Rs 1,95, 000.
The bidding for anchor investors will be held on December 9. The firm will make its debut on the BSE and NSE on December 17, 2021 and the allotment of shares will be finalised on December 17, 2021. The IPO is being registrated by Link Intime India Private Ltd.
Proceeds from the issue will be used to spend on opening new stores under the Metro, Mochi, Walkway and Crocs brands and general corporate purposes. Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book running lead managers to the IPO.
The company has 598 stores in 136 cities across India. 211 stores were opened in the last three years. The company sells footwear brands such as Metro, Mochi, Walkway, Da Vinchi and J Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim and Fitflop. It also offers accessories, such as belts, bags, socks, masks and wallets, at its stores.