Metro Brands IPO Opens Today: Should you Subscribe? Check GMP & other details here

Footwear retailer Metro Brands Ltd rolled out its initial public offering (IPO) on Friday, December 10.  The company backed by ace investor Rakesh Jhunjhunwala is set to raise Rs 1,367 with its offering. The IPO will be open for three days and will close on December 14.

Metro Brands Ltd’s Rs 1,367 crore IPO is now open for subscription. The footwear retailer had filed its draft red herring prospectus (DRHP) with markets regulator SEBI back in August. Starting in 1955, the retailer currently caters to the footwear needs of men, women, unisex and kids. According to its DRHP, the company aims to use the funds raised from the fresh issue to open new stores of the company, under the Metro, Mochi, Walkway and Crocs brands and for general corporate purposes.

Metro Brands IPO price band

The price band for Metro Brands Rs 1,367 crore IPO has been set at Rs 485-500 per share. Earlier on Thursday, Metro Brands Thursday informed that it had raised over Rs 410 crore from anchor investors ahead of IPO launch. The initial offering of the retailer comprises fresh issuance of equity shares worth Rs 295 crore and an offer for sale of 2.14 crore equity shares by existing shareholders.

According to market experts, the unlisted shares of Metro Brands were raising a premium (GMP) of Rs 20 in the grey market on Friday. The GMP shows a positive sign for the investors as the shares on sale are expected to list on December 22, 2021, in both BSE and NSE. As of 11:30 am on day 1 of bidding, Metro Brands IPO has been subscribed 0.12 times with retail category booked 0.24 times, as per BSE data.

About Metro Brands

Metro Brands is one of the biggest footwear speciality franchises in the country with over 590 stores in 136 cities. The retailer opened a total of 211 stores in the last three years, making it the third-largest company with the highest number of exclusive retail outlets in India. As per the company’s prospectus, the proceeds from the fresh issue will be used towards expenditure for opening more stores under various brands and other corporate purposes. The company also runs websites and sell footwear through various online marketplaces.

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