Metro Brands IPO GMP: Price, Can we buy?!

Sindujaa D N

Metro Brands IPO: The price band in the issue has been fixed at ₹485-₹500 per equity share.



Metro Brands IPO: The IPO of Metro Brands Limited (MBL), one of India's largest speciality retailer footwear companies, is opening on Friday, december 10. The issue will close on tuesday 14th December.



This company, invested by Rakesh Jhunjhunwala, is looking to raise Rs 1367.5 crore through a public issue. 



The company will issue fresh shares worth ₹ 295 crores. Whereas, the Offer for Sale (OFS) in the IPO is ₹1072.5 crores. For this amount, the existing promoters and shareholders of the company will sell 2.14 crore shares.



Metro Brands IPO Price & GMP

The price band in the issue has been fixed at ₹485-₹500 per equity share. You will be able to bid for a minimum of 30 equity shares (1 bid lot). Looking from the upper price band, if you want to invest in this IPO, then you will have to spend at least Rs 15,000.



Subscribe or not?

Giving its review and 'subscribe' rating on the IPO of the Rakesh Jhunjhunwala-backed company, Choice Broking's report says-

Metro Brands is one of the largest footwear retailers with around 3-4% market share in the organized market and has been given a subscribe rating. The company has been paying dividends continuously since the financial year 2000. We recommend subscribing to this issue for a longer period.



The company will open new stores with the money raised

Out of the total fundraising from the issue, the company will use Rs 225 crore to open new stores. These stores will be opened under the brands “Metro”, “Cobbler”, “Walkway” and “Crocs”.



Presently the company is operating 598 stores in 136 cities in India.



The retail investor will get a 35% share of the issue-

50% i.e. half of the total issue is earmarked for Qualified Institutional Investors, 35% for Retail Investors and the remaining 15% for High Net Worth Individuals (HNIs).



Company's financials

Due to the Kovid lockdown, the company's net profit reached 64.62 crores in FY 21, which was ₹ 160.57 crores in FY 20. However, if we talk about the current financial year 22, in 6 months i.e. till September, the company has registered a profit of Rs 43.07 crore. The company had to bear a loss of 43.11 crores in the same period last financial year.



Rakesh Jhunjhunwala also invested in this company-

Rakesh Jhunjhunwala's wife rekha Jhunjhunwala is the third-largest shareholder in Metro Brands. rekha Jhunjhunwala holds a 14.73% stake in the company.

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