December seems to be another action-packed month for IPOs, as several big ones get ready to launch. Metro Brands, a famous footwear retailer in India, has announced more of its IPO details. Those keen to subscribe to this company’s initial public offering may look at the details provided here before making a decision.
So, let’s dive right into the details.
|IPO Opening Date
|10 December 2021
|IPO Closing Date
|14 December 2021
|Book Built Issue
|Rs. 5 per equity share
|Maximum Order Size
The IPO or the company’s initial public offer consists of a new issue of equity shares and an offer of sale. The fresh issue of equity shares will amount to Rs. 295 crores.
On the other hand, the OFS (offer of sale) will see shareholders and promoters offloading 2,14,50,100 equity shares. Here is a break up of the offer of sale.
|Type of Investor
|Promoter Selling Shareholders
|1,30,15,000 equity shares
|Promoter Group Selling Shareholders
|84,20,000 lakh equity shares
|8,100 equity shares
Further, the company had tried to raise money privately to the tune of Rs. 3.29 crores from the sale of 73,136 shares. So the issue has seen a couple of changes in size. It was reduced from Rs. 250 crores to Rs. 246.7 crores butlater increased to Rs. 295 crores.
The objective of the issue is to raise funds to open more stores for its brands such as Mochi, Walkway, Metro and Crocs. It will also use the funds for regular corporate purposes.
Rekha Jhunjhunwala is the 3rdlargest shareholder, owning 14.73% as stake. Other promoter groups and promoters hold 83.99%.
Metro Brands Limited was established in 1955 and became one of India’s largest footwear retailers. The company makes footwear for men, women, children and unisex models. Some of its famous brands are:
Also, some of its third party brands are:
This company also offers bags, belts, wallets, masks, etc. Interestingly, the company models the COCO (Company-Owned and Company-Operated) business model. Metro Brands has its multi-brand outlets and exclusive brand outlets which manage its stores.
The financials of the company are shown below:
|For the year ended
|31 March 2021
|31 March 2020
|31 March 2019
|Profit After Tax
Note: Values are in Rs. Millions
The company operates around 598 stores spread over 136 cities and 30 states. Rakesh Jhunjhunwala has been an investor since 2007.
The company’s promoters are offloading 10% stake in this IPO. The stakes of the promoter and promoter groups will come down to 75% from close to 85%. Those who are looking to invest in Metro Brands Ltd. should make an informed choice after thorough analysis and research.
Ans. The promoters of this company are:
Ans. The timeline for the share allotment and listing is shown below:
Ans. The book running lead managers to the issue are:
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