The initial public offering (IPO) of ace investor Rakesh Jhunjhunwala-backed footwear retailer Metro Brands Ltd will open this week on Friday, December 10 for subscription and the three-day issue will close on December 14. The price band has been fixed at ₹485-500 per share.
The initial share sale comprises fresh issuance of equity shares worth ₹295 crore and an offer for sale of 2.14 crore equity shares by promoters and other shareholders. At the upper end of the price band, the public issue is expected to fetch ₹1,367.5 crore. The company's shares are expected to list on leading stock exchanges BSE and NSE on December 22.
Through the IPO, the company's promoters will offload nearly 10% stake. Currently, the promoters and promoter group hold an 84% stake in the company.
At present, the company has 598 stores in 136 cities spread across India. Of these, 211 stores were opened in the last three years. Metro Brands had the 3rd highest number of exclusive retail outlets in India, in fiscal 2021.
It retails footwear own-brands like Metro, Mochi, Walkway, Da Vinchi and J Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim and Fitflop. It also offers accessories, such as belts, bags, socks, masks and wallets at its stores.
Proceeds of the fresh issue will be used towards expenditure for opening new stores under the Metro, Mochi, Walkway and Crocs brands and for general corporate purposes.
It opened its first store under the Metro brand in Mumbai in 1955 and has since evolved into a one-stop-shop for all footwear needs by retailing a wide range of branded products for the entire family, including men, women, unisex and kids.
For the September quarter, Metro Brands' net profit stood at ₹43 crore versus a loss of ₹41 crore last year in the same quarter. It reported total income of ₹489 crore against ₹228 crore a year ago.
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Rakesh Jhunjhunwala-backed Metro Brands to launch IPO this week. Price band, key things to know - Livemint
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