Metro Brands IPO GMP, Lot Size, Price, Allotment Date

Metro Brand’s IPO opens today — here are all the important details you need to know. Lead investor Rakesh Jhunjhunwala backed Metro Brands, which is one of India’s largest specialty footwear retailers in India, opened its initial public offering (IPO) today (December 10). Launched in 1955 as a specialty footwear retailer in India, Metro Brands now caters to the footwear needs of men, women, unisex men, and children. It operates 586 stores in 134 cities in 29 states and union territories in India. Some of Metro’s brands include Mochi, Walkway, Davinchi, and J. Fontini, as well as third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop.

In addition to physical stores, sells products through websites, various online marketplaces, and social media platforms. The IPO consists of a new issue of ₹ 295 crores and an offer to sell 2.14 crore of shares by the promoters. The company will use the proceeds from the new show to open new stores with brands such as Metro, Mochi, Walkway, and Crocs and the rest of the funds will be used for general business purposes. 

Metro Brands IPO 2022 All Details 

Metro Brands IPO Opening Date  December 10, 2022 
Metro Brands IPO Closing Date  December 14, 2022 
Issue Type  Book Built Issue IPO 
Face Value  Rs. 5 per equity share 
IPO Price  Rs. 485 to 500 per equity share 
Market Lot  30 Shares 
Min Order Quantity  30 Shares 
Listing At  BSE, NSE 
Issue Size  Worth Rs. 1,367.51 Crore 
Fresh Issue  Worth Rs. 295.00 Crore) 
Offer for Sale  21,450,100 Equity Shares
(Worth Rs. 1,072.51 Crore) 

Important  Dates 

Metro Brands IPO 2022 Dates 

Metro Brands IPO Opening Date  Dec 10, 2022 
Metro Brands IPO Closing Date  Dec 14, 2022 
Allotment Date  Dec 17, 2022 
Initiation of Refunds  Dec 20, 2022 
The credit of Shares to Demat Account  Dec 21, 2022 
Metro Brands IPO Listing Date  Dec 22, 2022 

Fresh Issue vs. OFS 

  • Metro Brands includes a new issue and a sell offer which is in full aggregation up to Rs. 1,367.51 crore. 
  • New issue – Valid Rs. 295 crore 
  • Offer to sell (by promoter) – 21,450,100 shares (value Rs 1,072.51 crore).

Metro Brands IPO

Lot Size 

Min/Max  Lots  Shares  Amount 
Minimum  1  30  ₹15,000 
Maximum  13  390  ₹195,000 

Objectives of Issue 

Metro Brands plans to use the proceeds of the new issue to open new company stores, under the brands “Metro”, “Mochi”, “Walkway” and “Crocs” (“New Stores”) and for general business purposes.

Metro Brands Limited will not receive any proceeds from the OFS.  Metro Brands intends to use the net proceeds for the purposes set out below. 

  • Expenses for the opening of new stores of our Company under the Metro, Mochi, Walkway and Crocs brands.
  • From the net proceeds of the new issue, the company proposes to create 219 new stores.
  • It is proposed that the creation of the New Stores be carried out entirely from the net proceeds of the new issue. 

 Metro Brands Company Financials 

The below table includes the financials of Metro Brands for the past three years. 

Rs. in Millions  30-Sep-21  31-Mar-21  31-Mar-20  31-Mar-19 
Total Assets  17,396.06  16,593.40  16,174.23  13,215.06 
Total Revenue  4,892.68  8,785.38  13,110.68  12,368.95 
Profit After Tax  430.74  646.19  1,605.75  1,527.31 

Metro Brands IPO Allotment 2022

The divestment of Metro Brands IPO is scheduled for next week, December 17, 2022, and the granted shares will be credited to Demat accounts on/by December 21, 2022.

Metro Brands GMP Today 

The Metro Brands The 2022 IPO gray market premium is approximately 7,580 on December 10, 2022. Metro Brands IPO GMP percentage is approximately 1,516%. 

Special features

Metro Brands Limited is one of the largest pan-Indian footwear retailers with brand appeal among ambitious consumer segments in the rapidly growing retail footwear industry.

It sells brands such as Metro, Mochi, Walkway, Da Vinchi, and J Fontini, Crocs, Skechers, and Clarks. The wide range of brands and products cater for all occasions in all age groups and market segments, resulting in strong customer loyalty.

The company has an efficient operating model through deep engagement with suppliers and a TOC-based supply chain. 

Choice Broking

Providing a ‘Subscribe for long term review’ said: ‘MBL is among the top 5 shoe brands in India and is ranked fourth in the domestic footwear market (in terms of sales during exercise 21).

Among major footwear retailers, has the highest net profit margin in FY21 and the best operating margin performance in FY1521.

The company is one of the ambitious Indian brands in the footwear category (i.e. it caters to the mid to high end) and therefore has a higher retail ASP than the mid-market. 

Angel One

“In terms of valuations, the post-issue TTM P / E is 91x (at the high end of the issue price range), which is high considering MBL’s historic CAGR and below. 9%, respectively. 1820.

In addition, the company’s historical net profit growth is weak compared to its colleagues Relaxo Footwears.

However, MBL has a light business, strong brands, and a wide product line, but we believe these positives are captured in the notes commissioned by the company.

Promoters of Metro Brands 

Promoters of the company include Rafique A. Malik (President), Farah Malik Bhanji (CEO), Alisha Rafique Malik (Vice President – E-Commerce and Marketing) of the company, Rafique Malik Family Trust, and Aziza Malik Family Trust. 

About Metro Brands Limited

Metro Brands Limited (MBL) is one of India’s largest specialty footwear retailers and one of the most ambitious Indian brands in the footwear category.

Formed in January 1977, Metro Brands has grown into a one-stop-shop for all footwear needs. Metro Brands Limited is the distributor and reseller of Crocs in India.

From opening a store in 2015 to a network of over 150 Crocs stores in 2019 speaks for itself. 

A professionally managed organization, with over 4000 passionate employees, strong processes, and core values, makes Metro Brands Limited stand out from the class. 

That was all we know about Metro Brands IPO GMP, Lot Size, Price, Allotment date. If you have any queries, just mention them below in the comment section.

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