Today, 10th of December 2021, the Metro Brands IPO subscription has come live for application. This Rs. 1367 Cr issue shall remain open till the 14th of December 2021 for all market participants to subscribe.
Let us talk about the company, its finances, the purpose of the issue, and some key highlights in this article to help you decide whether you should subscribe to this IPO or not.
About Metro Brands
Metro Brands Limited is a specialty retailer of footwear in India. The company offers a variety of branded products for the whole family, from infants to senior citizens.
Metro Brands is a leading retailer of shoes and accessories, with a wide range of well-known brands such as Metro, Mochi, and Walkway. They also offer third-party products such as socks, belts, and shoes.
The company operates through a perfect model, which is a strategy that involves the ownership of multiple branded outlet stores. They have 598 stores across various cities as of September 30, 2021. The company’s stores are operated in different states and union territories.
The company’s retail model is focused on providing a better customer experience. It also focuses on developing exclusive brand outlets for third-party products.
Metro Brands IPO details
The offering begins today, 10th of December 2021, and closes on the 14th of December 2021. It is a bookbuild type of issue and the FV of each share is set to Rs. 5 per unit. The shares after being listed will be available for free trade on both the exchanges, BSE and the NSE.
The qualified institutes are allowed to subscribe up to 50% of the total issue whereas retail investors and non-institutions can apply for 35% and 15% respectively.
Out of the total size of this offering, which is around Rs. 1367 crores, fresh stocks worth Rs. 295 crore shall be offered and the balance stocks worth Rs. 1072 crores are being sold by the existing shareholders.
|Particulars||31st March 2021||31st March 2020||31st March 2019|
|Assets||Rs. 16,593 Mn||Rs. 16,174 Mn||Rs. 13,215 Mn|
|Turnover||Rs. 8,785 Mn||Rs. 13,111 Mn||Rs. 12,369 Mn|
|After-Tax Profit/(Loss)||Rs. 646 Mn||Rs. 1,606 Mn||Rs. 1,527 Mn|
On a consolidated basis, the company has posted a profit after tax of Rs. 1236.90 crore for the last three fiscal years. Its total turnover has also increased by 14% YoY by Rs. 489.27 crores.
For the last three years, it has posted an average return of 14.08%. If we assume that its earnings for the year ended December 31, 2017, are at par with its post-issue paid-up capital, then the asking price should be around Rs. 157.23.
The company has paid a total of 15 million in dividends. It has a policy of not distributing any more than 15 million annually.
Metro Brands IPO – Key Highlights
- It is a leading home-grown footwear brand in India
- They believe in showcasing vivid varieties of footwear for all needs of their customers
- The business model they operate with is highly efficient
- Marketing is done by all means to spread wide brand awareness
- The history of its promoters is strong and the track record of Metro brands is flawless
Where will the shares of Metro Brands be listed?
The shares of Metro Brands after its allotment will be listed on both, the National Stock Exchange and the Bombay Stock Exchange. Date of listing of Metro Brands IPO
Who are the lead managers of this IPO?
Following are the leading managers to this offering.
Ambit Private Limited, DAM Capital, Motilal Oswal, Equirus Capital, Axis Capital Limited, and ICICI Securities.
Who are the promoters in Metro Brands?
The promoters of Metro Brands include individuals Rafique Malik, Alisha Malik, Farah Malik, and the trusts Aziza Malik Family Trust, and Rafique Malik Family Trust.