Metro Brands plans an IPO at Rs 485-500 in the wake of Rakesh Jhunjhunwala's backing

The initial public offering (IPO) of footwear retailer Metro Brands will hit the primary market on December 10, Friday. The price band for the initial stake sale has been fixed at Rs 485-500.

Metro Brands, one of India's top footwear specialty retailers, will use the net proceeds from new issuance to open new stores under the 'Metro,' 'Mochi,' 'Walkway,' and 'Crocs' brands, as well as for general business reasons.

In the fiscal year 2020-21, the firm had a revenue of Rs 800.06 crore and a net profit of Rs 64.62 crore, compared to Rs 1,285.16 crore and Rs 64.62 crore in the previous fiscal year. The firm reported a net profit of Rs 43.07 crore and sales of Rs 456 crore for the six-month period ended September 2021.

The footwear company is backed by ace investor Rakesh Jhunjhunwala and owns notable brands such as Metro, Mochi, Da Vinchi, Walkway, and J Fontini, as well as third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop. Rekha Jhunjhunwala, Big Bull's wife, is the third-largest stakeholder in the firm, with a 14.73 percent interest. Metro Brands is the second RJ-backed IPO in December, following Star Health and Allied Insurance Company.

The IPO consists of the issuing of new equity shares totaling Rs 295, while promoters and current shareholders would discharge 2,14,50,100 equity shares from their holding through an offer-for-sale (OFS).

In the OFS, the promoters will sell 1.30 crore equity shares, while the promoter group would sell 84.2 lakh equity shares. Other stockholders will liquidate the remaining 8,100 equity shares.

Investors can bid for a minimum of 30 shares and then in increments of 30. The business plans to raise Rs 1,039.6 crore through the main method. The IPO is accessible for the subscription until Tuesday, December 14th.

Qualified institutional buyers (QIBs) will get about half of the net issuance, while non-institutional buyers would receive 15% of the shares. The retail part of the promotion is set at 35%.

The issue has been managed by Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities, and Motilal Oswal Investment Advisors. Link Intime India has been selected as the issue's registrar.

This Week's IPOs:

CE Info Systems (MapmyIndia),

RateGain Travel Technologies,

Shriram Properties and Metro Brands are all scheduled to go public this week.

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