Ace investor Rakesh Jhunjhunwala-backed Metro Brands Ltd's (MBL) initial public offering (IPO) was subscribed 3.6 times on December 14, the third and final day of the bidding process. The offer received bids for almost seven crore equity shares against the 1.9 crore shares on offer.
Metro Brands' IPO, which opened for subscription on December 10 at a price band of Rs 485-500 per share, concluded on December 14. Estimates suggest the public offering is likely to raise Rs 1,367.5 crore at the upper end of the pricing band.
The portions reserved for qualified institutional buyers (QIBs) and non-institutional investors were subscribed 8.5 times and three times respectively. The quota for retail investors was booked 1.1 times.
Metro Brands secured a little over Rs 410 crore from anchor investors on Thursday, ahead of the IPO. Unlike several other IPOs, like Zomato and Nykaa, the big bull-backed IPO seems to be receiving a lukewarm response on the first day of subscription.
The footwear retailer's shares are fetching a grey market premium of Rs 80, according to IPO watch data. The stock is expected to make its debut in the secondary market on December 22, 2021.
Metro Brands' initial share sale includes a fresh issuance of equity shares worth Rs 295 crore and promoters and other shareholders offered to sell 2.14 crore equity shares.
After the company hit the primary market today, the company’s managing director Farah Malik said a lot of growth for the firm is expected in the offline space as well as in online sales. The management is very bullish on how the year FY22 is looking ahead.
Most brokerages have a buy rating on the issue as they see strong growth potential as it is one of the largest pan-India footwear retailers.
According to IDBI Capital, MBL’s aggressive plans to add stores and product portfolio expansion would cater to growing demand in branded footwear and pave the way for sustainable earnings growth and improved operational parameters in future. Also, Marwadi Financial Services has a 'subscribe’ rating to the IPO as it is available at a reasonable valuation compared to its peers.
(Edited by : Jomy Jos Pullokaran)
First Published: IST