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Metro Brands IPO: How IPOs of other Rakesh Jhunjhunwala-backed cos have fared

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Metro Brands is the fifth initial public offer (IPO) backed by ace investor Rakesh Jhunjhunwala. In the past 11 years, four firms backed by Jhunjhunwala—A2Z Infra Engineering, Barbeque Nation, and Nazara Technologies, Star Health and Allied Insurance—have gone public. Here's how the shares of these companies have performed since the time they were listed.

Metro Brands IPO: How IPOs of other Rakesh Jhunjhunwala-backed cos have fared
Billionaire investor Rakesh Jhunjhunwala-backed Metro Brand's initial public offering opened for subscription today. The company is looking to raise over Rs 1,360 crore, hoping to garner over Rs 1,070 crore from an offer for sale (OFS) and Rs 295 crore from fresh issue. It has raised Rs 410 crore from anchor investors. Jhunjhunwala and his wife are the third-largest shareholders of the company, with a 14.73 percent stake.
Metro occupies the fourth number in the domestic footwear market in terms of sales. The company owns brands like Mochi, Metro, Walkway, J Fontini, and Da Vinchi. And certain third-party brands like Skechers, Clarks, Crocs, Fitflop, and Florsheim.
Sai Satish, Venkatasamy Jagannathan, Berjis Minoo Desai are among the selling shareholders. Firms like Safecorp Investments, MMPL Trust, MIO IV Star, MIO Star, APIS Growth 6, University of Notre Dame are also selling their stake. However, Jhunjhunwala is not giving up his holdings.
He and his wife Rekha Jhunjhunwala hold a 17.26 percent stake in the company whereas the promoters own over 62.80 percent.
This is not the first Jhunjhunwala-backed firm to knock on the doors of primary markets. In the past 11 years, three firms—A2Z Infra Engineering, Barbeque Nation, Nazara Technologies, and Star Health—have gone public.
Here's how the shares of A2Z Engineering, Barbeque Nation, and Nazara Technologies, and Star Health have performed since the time they were listed.


A2Z Engineering
A2Z Engineering was incorporated in 2002 and provides services to power generation and transmission companies. Jhunjhunwala had invested Rs 20 crore to buy a 30 percent stake in the company in 2006 at less than Rs 14 apiece.
In October 2010, the company came out with an initial public offering priced at Rs 400 share. Pre-IPO, Jhunjhunwala held around a 21 percent stake in the company. He was among the investors who were offering a part of their shares in the IPO.
At that point, the market was still recovering from the after-effects of the global financial crisis of 2008. The institutional and retail portion of the A2Z book was undersubscribed, but the issue sailed through on support from high-net-worth investors. As was widely expected, the stock was listed at a discount to the issue price. Jhunjhunwala bought shares on the day of listing to support the stock, but A2Z ended the day at a 17 percent discount.
Today, the shares are quoted at Rs 6. Jhunjhunwala doesn't hold a stake in the company anymore.
A2Z Engineering Rakesh Jhunjhunwala A2Z Engineering - all-time share performance (Source: TradingView)
Nazara Technologies
Nazara Tech is a leading diversified gaming and sports media platform with customers across India and other emerging markets of Africa and North America. Jhunjhunwala owned a 10.82 percent stake in the company prior to the IPO.
In March 2021, the company announced an IPO at Rs 1101 per share. The stock debuted with a stellar premium of 80 percent, listing at Rs 1,990 on NSE.
It went on to hit a record high of Rs 3,122 in September and is now trading at Rs 2,301, more than 100 percent higher than the issue price.
Nazara Tech Rakesh Jhunjhunwala Nazara Tech - all-time share performance (Source: TradingView)
Barbeque Nation Hospitality
Commanding an issue price of Rs 498-500 per share, Barbeque Nation Hospitality—which owns and operates Barbeque Nation, Toscano restaurants, and UBQ— also debuted in March this year.
However, while Nazara was a leading player in its market, Barbeque Nation came from an industry dealing with the shocks of the coronavirus pandemic. Rakesh Jhunjhunwala owned just a 1.69 percent stake. Jhunjhunwala-owned Alchemy India bought 5.75 lakh shares in the company at Rs 827 apiece in March 2018.
The stocks listed at a discount of 2 percent at Rs 489.85 per share on the National Stock Exchange.
It went on to hit a record high of Rs 1,913 in October and is now quoted at Rs 1,462, over 200 percent above the issue price.
Barbequqe Nations Rakesh Jhunjhunwala Barbeque Nations - all-time share performance (Source: TradingView)
Star Health IPO
Commanding an issue price of Rs 870-900 per share, Star Health and Allied Insurance Company—the largest private health insurance company in India—debuted Friday, December 10.
Rakesh Jhunjhunwala owns a 14.98 percent stake in the company and despite a weak listing, he has not sold the stake in the company. The company had to cut its IPO size from Rs 6,400 to Rs 7,249 crore due to subdued response by investors.
The stocks listed at a discount of 6 percent at Rs 848 per share on the Bombay Stock Exchange. It recovered thereafter and surged over 6 percent above the open price.
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