Metro Brands IPO Subscription Status: Offer subscribed 3.64 times on final day of bidding

On the final day of bidding, the Metro Bands' Initial Public Offer (IPO) was subscribed 3.64 times. Ace investor Rakesh Jhunjhunwala-backed company's IPO received 5,71,70,430 bids against 1,91,45,070 shares on offer for this issue as it was booked 2.99 times. This month, Jhunjhunwala-backed company was the second to come out with its initial public offer as Indian billionaire's company Star Health shares were listed earlier at discount on the bourses.

The portion reserved for retail Individual Investors (RIIs) was subscribed 1.07 times while the non-institutional investors' category booked the issue 1.41 times. Bidding for qualified institutional buyers on the last day and the portion reserved for them was subscribed 7.52 times.

The IPO was subscribed 0.7 times on the opening day and 0.52 times on day 2 of the offer.

Metro Brands IPO

On December 10, Rakesh Jhunjhunwala-backed Metro Brands Ltd. (MBL) IPO had opened for subscription and is scheduled to close on December 14. The price band for Rs 1,370 crore IPO has been fixed at Rs 485 to 500 per share.

Metro Brands is offering 2.735 - 2.753 crore shares that present around 10.07% of its post-issue paid-up equity shares of the company. The total size of the IPO is Rs. 1,335.3 - 1,367.5 crore.

Metro Brands IPO subscription status

The company's issue is a combination of fresh and offer for sale (OFS). The company will get Rs 225 crore from the net fresh issue proceeds that will be utilized to fund the expenditure for opening new stores of the company while no proceeds will be received from the OFS part of the issue. According to the IPO details, for qualified institutional buyers, as much as 50% of the net issue is reserved, and for non-institutional bidders and retail investors,15% and 35% of the net issue is reserved, respectively.

Currently, the promoter holds an 83.99% stake in the company and post-IPO, which will come down to 74.27%. Public holding will increase to 25.73% from the current 16.01%.

Metro Brands is one of the biggest footwear speciality franchises in the country with over 590 stores in 136 cities.

(Image: SHUTTERSTOCK)