Rakesh Jhunjhunwala-backed Metro Brands IPO subscribed 27% on first day of bidding

The public issue of footwear retail company Metro Brands has subscribed 27 percent, garnering flings for51.06 lakh equity shares against the IPO size of1.91 crore equity shares on December 10 The Rakesh Jhunjhunwala- backed company mopped up Rs 410 crore through the anchor book on December 9 The company is planning to raise Rs crore via the original public immolation that consists of a fresh issue of Rs 295 crore and an offer for trade of equity shares by promoters.

The price band for the offer, which will close on December 14, has been fixed at Rs 485-500 per equity share.
The portion set away for retail investors was subscribed 52 percent andnon-institutional investors portion reserved 2 percent Good institutional investors are yet to put in their flings for the offer Half of the IPO size is reserved for good institutional buyers, 35 percent for retail investors, and the remaining 15 percent fornon-institutional investors.

Metro Brands has 586 exclusive retail outlets, the third loftiest number of similar outlets in India.

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Metro retails its footwear under own brands of Metro, Mochi, Walkway, Da Vinchi and J Fontini, as well as certain third- party brands similar as Crocs, Skechers, Clarks, Florsheim, and Fitflop, which round the in- house brands We believe Metro’s aggressive plans on store addition and product portfolio expansion would feed to growing demand in ingrained footwear and pave the way for sustainable earnings growth and bettered functional parameters in future,” said IDBI Capital which recommended subscribe for the issue Metro Brands is going to use the proceeds from the fresh issue for the expansion of new stores under its’Metro’,’Mochi’,’Walkway’and’Crocs’ brands.