Metro Brands IPO | Rekha Jhunjhunwala, wife of Rakesh Jhunjhunwala, is the third largest shareholder in the company
Rakesh Jhunjhunwala-backed footwear specialty retailer Metro Brands, on December 7, fixed a price band for its maiden public offering at Rs 485-500 per equity share. At the upper price band, the offer will fetch the company Rs 1,367.5 crore.
The offer comprises a fresh issue of Rs 295 crore and an offer for sale of Rs 1,072.5 crore by promoters who will offload 2.14 crore equity shares. The issue will be open for subscription during December 10-14.
The bids can be made for a minimum of 30 equity shares and in multiples of 30 shares thereafter. Hence, retail investors can make a minimum investment of Rs 15,000 for a single lot and their maximum investment would be Rs 1.95 lakh for 13 lots.
The company will utilise net proceeds from the fresh issue to open new stores under brands Metro, Mochi, Walkway and Crocs; and general corporate purposes.
Half of the offer has been reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
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Metro Brands retails its footwear under its own brands 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 stores.
The company operated 598 stores across 136 cities spread across 30 states and union territories in India, as of September 2021.
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The company recorded a profit of Rs 64.62 crore for FY21, which declined sharply from Rs 160.57 crore in FY20 due to Covid-led lockdowns. Revenue also declined to Rs 800.06 crore from Rs 1,285.16 crore in the same period.
The company clocked a profit of Rs 43.07 crore in the six-month period ended September 2021 against a loss of Rs 43.11 crore in the corresponding period a year ago. Revenue increased to Rs 456 crore from Rs 176.54 crore during the same period.
The book running lead managers to the offer are Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors.Internet Explorer Channel Network