Metro Brands Limited IPO – Dec 10 to 14

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Metro Brands Limited IPO – Dec 10 to 14

December 08, 2021
Metro Brands Limited IPO – Dec 10 to 14

Metro Brands Ltd. is coming out with a fresh public issue to raise Rs 1,367.51 crores from the market.

Key details of the issue:

  • Issue opens – Dec 10 (Friday)
  • Issue closes – Dec 14 (Tuesday)
  • Issue size – Rs 1,367.51 crores
  • Price band – Rs 485 to 500 per equity share
  • Bid lot – 30 shares and in multiples thereof

And here are some details of the company and further details on the Metro Brands Ltd. issue.

Company details:

Metro Brands Limited was incorporated on Jan 19, 1977. Metro is one of the largest Indian footwear speciality retailers and is among the aspirational Indian brands in the footwear category. They opened their first store under the Metro brand in Mumbai in 1955 and have since evolved into a one-stop shop for all footwear needs. Metro Brands retails footwear under their own brands of Metro, Mochi, Walkway, Da Vinchi and J. Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop, which complement their in-house brands.

As of Sept 30, 2021, Metro Brands operated 598 stores across 136 cities spread across 30 states and union territories in India. Metro had the third highest number of exclusive retail outlets in India in Fiscal 2021.

They also offer accessories such as belts, bags, socks, masks and wallets at their stores. They also retail footcare and shoe-care products at their stores through their joint venture, M.V. Shoe Care Pvt Ltd. The company’s business is consumer-centric and they have loyalty programs for their customers, including Club Metro, My Mochi, and Crocs Club. Metro primarily follows the Company Owned and Company Operated (COCO) model of retailing through their own Multi Brand Outlets (MBOs) and Exclusive Brand Outlets (EBOs). They operate Metro, Mochi and Walkway branded MBOs and Crocs-branded EBOs. They also operate shop-in-shops (SIS) in major departmental stores across India.

Metro endeavours to drive their sales through a strong focus on product assortment – a Theory-of-Constraints (TOC) method for their supply chain, offering greater availability and reducing stock-outs. As of Sept 30, 2021, they operated 2 warehouses in India, both located at Bhiwandi in Maharashtra, on a leave-and-license basis. They recorded the highest realization per unit compared to the 2 leading players in India from Fiscal 2019 to Fiscal 2021, and in Fiscal 2020 they recorded the highest operating margins among the key players in India.

Issue size: Rs 1,367.51 crores


Issue break-up:

  • QIB – 50% of the net offer – Rs 683.75 crores
  • NIB – 15% of the net offer – Rs 205.13 crores
  • RET – 35% of the net offer – Rs 478.63 crores

Listing: NSE and BSE

Registrar: Link Intime India Private Limited

UPI: All retail applications through brokers are compulsorily in UPI mode

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