GMP before the number opens for subscription this week
Investor Ace Rakesh Jhunjhunwala, shoe retailer Metro Brands Ltd will launch its initial public offering (IPO) this week on Friday December 10 for subscription and the three-day issue will close on December 14. The price range has been set at ??485-500 per share. The call for tenders for key investors will open on December 9.
Metro Brands shares show a premium (GMP) of ??70 on the gray market today. The company’s shares are expected to go public on December 22, 2021.
The initial sale of shares includes a new issue of shares worth ??295 crore and an offer to sell 2.14 crore of shares by promoters and other shareholders. At the high end of the price bracket, the public issue should fetch ??1,367.5 crores.
Half the size of the issue was reserved for Qualified Institutional Buyers (QIB), 15% for non-institutional investors and 35% for retail investors. Investors can bid on a minimum of 30 stocks and in multiples thereof.
Metro Brands will use the proceeds from the new issue to fund the opening of new stores under the Metro, Mochi, Walkway and Crocs brands and for general corporate purposes.
At present, the company has 598 stores in 136 cities spread across India. Of these, 211 stores have been opened in the past three years. Metro Brands had the 3rd highest number of exclusive outlets in India, in fiscal 2021.
It retails shoe brands such as Metro, Mochi, Walkway, Da Vinchi, and J Fontini, as well as some third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop. It also offers accessories, such as belts, bags, socks, masks and wallets in its stores.
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