Investors Did Not Benefit From The Listing Of Metro Brands IPO
Investors did not benefit from the listing of Metro Brands’ IPO, prices came down by 13 percent.
Shares of footwear retailer Metro Brands Ltd on its stock market debut on the NSE started trading at Rs 437 per share in Wednesday’s session, down 12.6% from its issue price of Rs 500 per share.
The stock is listed on BSE at Rs 436 per share.
Metro Brands’ three-day initial public offering (IPO) was subscribed 3.64 times on the last day of application, which opened on December 10 and closed on December 14.
Share market veteran investor Rakesh Jhunjhunwala has a stake in the company.
The company had raised over Rs 410 crore from anchor investors. The price range of the offer was Rs 485-500 per share.
Investors did not benefit: The IPO of Metro Brands consisted of a fresh issue of Rs 295 crore and an offer for sale (OFS) of 2,14,50,100 equity shares.
The company will use the proceeds from the issue to open new stores under the brands ‘Metro’, ‘Mochi’, ‘Walkway’ and ‘Crocs’ and for general corporate purposes.
Metro Brands has 598 stores in 136 cities across India. Of these, 211 stores were opened in the last three years. Metro Brands had the third-largest number of exclusive retail outlets in India in FY21.
The company retails footwear such as Metro, Cobbler, Walkway, Da Vinci, and Jay Fontini as well as some third-party brands such as Crocs, Skechers, Clarks, Florsheim, and FitFlops.
Metro Brands also offers accessories like belts, bags, socks, masks, and wallets at its stores.
On the other hand, the initial public offering (IPO) of cash management company CMS Info Systems got a 40 percent subscription on the first day on Tuesday.
Bids were received for 1,48,92,132 shares as against 3,75,60,975 shares offered under the IPO, according to National Stock Exchange data.
Retail individual investors (RIIs) subscribed 79 percent and non-institutional investors one percent.
The company’s Rs 1,100-crore IPO includes an offer for sale of all shares of promoter Sion Investment Holdings Pte Ltd. The company’s IPO has a price range of Rs 205 to Rs 216 per share.
