Metro Brands IPO to open on Dec 10: GMP, price band, lot size and other details

Footwear retailer Metro Brands will open its initial public offer (IPO) on December 10. The grey market premium for the share sale of the firm backed by ace investor Rakesh Jhunjhunwala stands at Rs 75 today. Rekha Jhunjhunwala, wife of Jhunjhunwala, is the third-largest shareholder in the company, owning a 14.73 per cent stake.

The firm has fixed a price band of Rs 485-500 per share.

Considering the GMP of Rs 75, the share is likely to list on BSE at Rs 575 or 13% premium to the issue price on December 22.

The IPO will close on December 14. Metro Brands plans to raise Rs 1,368 crore through the share sale.

The IPO comprises fresh issue of equity shares worth Rs 295 crore and an offer for sale of 2.14 crore equity shares by promoters and other shareholders. Currently, the promoters and promoter group hold 84 per cent stake in the company and will sell nearly 10 per cent stake through the IPO.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors. The IPO's lot size is 30 shares for which one will have to spend Rs 15,000. A retail-individual investor can apply for up to 13 lots or 390 shares by spending Rs 1,95,000.

The issue will open for anchor investors on December 9. The allotment of shares will be finalised on December 17, 2021 and the firm will make its debut on BSE and NSE on December 22. Link Intime India Private Ltd is the registrar to the IPO.

Proceeds of the issue will be used toward expenditure for opening new stores under the Metro, Mochi, Walkway and Crocs brands and for general corporate purposes. Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book running lead managers to the IPO.

Currently, the company has 598 stores in 136 cities spread across India. Of these, 211 stores were opened in the last three years.

The company sells footwear brands such as 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.