Metro Brands Limited is a footwear company which runs retail stores across India. Its famous brands include Metro, Walkway, Mochi, Da Vinchi, Crocs, Clarks, Fitflop, Skechers etc. Currently the company has 598 Stores in India. The store is present in 30 states across 136 cities. Also the name of ace investor Rakesh Jhunjhunwala has been attached to the company since 2007.
IPO DETAILS
Metro Brands Limited IPO is set to launch on 10th Dec., 2021. The subscription timeline extends till 14th Dec, 2021. The size for the IPO is 1367.51 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 295 Crore Rs. Shares issued through Offer for Sale are worth Rs. 1072.51 Crore. The lot size is 30 shares and the price range is 485 Rs. – 500 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 5 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 10th Dec, 2021 |
| CLOSING DATE FOR IPO | 14th Dec, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 5 Rs. per share |
| IPO price band | 485 Rs. – 500 Rs. |
| LOT SIZE | 30 shares |
| MINIMUM ORDER QUANTITY | 30 shares |
| ISSUE SIZE | 1367.51 Crore Rs. |
| OFFER FOR SALE | 1072.51 Crore Rs. |
| FRESH ISSUE | 295 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 22nd Dec, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 10th Dec, 2021 |
| CLOSING DATE FOR IPO | 14th Dec, 2021 |
| IPO ALLOTMENT DATE | 17th Dec, 2021 |
| REFUNDS | 20th Dec, 2021 |
| DEMAT A/C CREDITED ON | 21st Dec, 2021 |
| IPO LISTING DATE | 22nd Dec, 2021 |
Metro Brands Limited IPO begins for subscription from 10th Dec, 2021. The IPO subscription would continue till 14th Dec, 2021. The allotment status for the shareholders who applied would come on 17th Dec, 2021. The refunds for the ones who did not get allotment would be initiated on 20th Dec, 2021. The DEMAT accounts of shareholders would be credited on 21st Dec, 2021. The listing of the company would be accompanied on 22nd Dec, 2021.
Lead Managers And Promoters
The promoters of the company are Aziza Malik Family Trust, Rafique Malik Family Trust, Alisha Rafique Malik, Rafique A. Malik and Farah Malik Bhanji.
The lead managers are :
- Axis Capital Limited
- DAM Capital Advisors Ltd.
- Ambit Private Limited
- Equirus Capital Private Limited
- Motilal Oswal Investment Advisors Pvt Ltd
- ICICI Securities Limited
The minimum lot size for the company is decided at 30 shares. This holding accounts to 15000 Rs.. The maximum lot size is decided at 390 shares. This amounts to 195000 Rs.. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 30 shares | 15000 Rs |
| Maximum | 390 shares | 195000 Rs |
OBJECTIVES FOR THE IPO
- The funds can be utilised for General corporate purposes.
- The expansion plans of the company are the reason for IPO money pooling. New stores would be established under Crocs, Mochi, Walkway and Metro.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 16593 | 16174 | 13215 |
| REVENUE | 8785 | 13110 | 12369 |
| NET PROFIT | 646 | 1606 | 1527 |
The financial track record can be considered sound as the company has managed to be profitable in COVID situation as well. However the profits have been stable largely and have not increased much. But the assets of the company have been under constant expansion mode. Currently the company is trying to expand its Mochi and Crocs brand. This shows the company’s motives to boost the profit of it. Along with this the revenues have also dampened due to COVID. It is visible in the company’s financial figures. However the company is progressing well and one can think of investing in it. However the best time would be after analysing the one year results of it.
PROS
- One of the leading companies in the footwear business.
- Huge asset base given the nature of the company’s business activity.
- Even during COVID the company managed to stay profitable.
- Great Financial Performance in comparison to its local store business.
CONS
- An uneven profit is noticeable. Also the profit has not increased in proportion to the asset base.
Metro Brands Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Metro Brands Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
