Metro Brands Ltd, one of the noted footwear retailers in the country, has filed DRHP with the market regulator to raise funds through an Initial Public Offering. According to the DRHP filed, the company plans to raise Rs. 250 crores through fresh equity share issuance.
Know all about Metro Brands IPO here!
A Closer Look at Metro Brands IPO
Metro Brands Ltd features significant investments by veteran investor Rakesh Jhunjhunwala. As of 31 March 2021, the billionaire investor held a 14.75% stake in the company. The footwear company manufactures budget, mid-range, and premium segment footwear in India. Here are a few crucial details about this IPO that you should know:
- As per the DRHP filed with the market regulator, Metro Brands Ltd is set to conduct an offer for sale of 2.19 crore equity shares. The promoters and shareholders will sell their stake in the OFS. As of now, Farah Malik Bhanji, Rafique A. Malik, Aziza Malik, and Rafique Malik Family Trust are listed as the company’s promoters.
- Furthermore, it also plans to raise up to Rs. 10 crores via a pre-IPO placement. The fresh issue size will reduce if a pre-IPO placement is completed.
Wondering how the company plans to utilise its proceeds?
Metro Brands intends to –
- Utilise Rs. 188.1 crores to start 219 new stores under brands such as Mochi, Metro, Crocs, and Walkaway.
- It will use the rest of the amount raised to meet general corporate purposes.
A Quick Look at Metro Brands Ltd Financials and Market Reputation
Metro Brands Ltd started its operations in Mumbai in 1955. Once regarded as a one-stop-shop for footwear, the company now operates nearly 596 stores across 134 cities and 29 states and UTs.
For FY 2020, its operating revenue range is over Rs. 500 crores. Moreover, Metro Brands Ltd EBITDA witnessed a significant increase of 48.82% during the previous year.
Here are a few financial details about the company that might interest you:
- Revenue succumbed 37.7% over the previous fiscal to reach Rs. 800 crores
- Net profit came to Rs. 64.4 crores, which was Rs. 160.6 crores during the previous year
- At the same time, Metro Brands Ltd book net worth saw an increase of 17.38%
The IPO is the first step forward by Metro Brands Ltd to achieve a significant market presence during these unprecedented times. Investors may find this Initial Public Offering favourable considering the company’s strong portfolio and noteworthy backing by ace investor Rakesh Jhunjhunwala.
Frequently asked questions
- Who are the merchant bankers to advise Metro Brands Ltd on the IPO?
The merchant bankers to Metro Brands Ltd IPO are Ambit, Axis Capital, Equirus Capital, DAM Capital Advisors, and others.
- What is the tentative date for Metro Brands Ltd IPO?
The date is yet to be announced.
- What is the authorised share capital of Metro Brands Ltd?
Metro Brands Ltd has an authorised share capital worth Rs. 150 crores.