Metro Brands IPO receives 27% subscription on Day 1, Retail News, ET Retail

New Delhi: Footwear retailer Metro Brands Ltd’s initial public offering was 27% underwritten on the first day of the offering on Friday. The company, which is backed by prominent investor Rakesh Jhunjhunwala, on Thursday raised more than 410 crore rupees from key investors.

The Initial Public Offer (IPO) received offers for 51.06.330 shares against 1.91.45.070 shares offered. This translates to a 27% subscription, according to data available from the ESB.

The individual retail investor (RII) share received 52 percent subscriptions while the quota for non-institutional investors received 2 percent subscriptions. There were no offers for the Qualified Institutional Buyers (QIB) category on day one, the data showed.

The IPO includes a new issue of shares valued at Rs 295 crore and an offer to sell 2.14 crore of shares by promoters and other shareholders. The promoters will divest a stake of nearly 10 percent. For the offer, the price range is Rs 485-500 per share. At the high end of the price range, the public issue is expected to fetch Rs 1,367.5 crore.

Proceeds from the new issue will be used for the expenses of opening the Company’s new stores, under the “Metro”, “Mochi”, “Walkway” and “Crocs” brands and for general corporate purposes.

Currently, the company has 598 stores in 136 cities across the country.