Metro Brands IPO subscribed 3.6 times by end of issue
Footwear retailer Metro Brands’ initial public offering had been subscribed 3.6 times at the end of the final day of the issue on December 14. The business’ IPO received positive recommendations but faced initial struggles.
Metro Brands’ IPO saw applications for 69,612,480 shares against the issue size of 19,145,070 shares by the end of the issue, ET Bureau reported. The IPO had received numerous recommendations from finance firms but doubts remained over the effects of the Covid-19 pandemic on the business as well as its heavy reliance on its third party brands.
“Considering the TTM adjusted EPS of Rs 5.55 [$0.073] on a post-issue basis, the company will list at a P/E of 90.01 with a market cap of Rs 13,575.4 crore, while its peers- Bata India and Relaxo Footwear are trading at a P/E of 922 and 111 respectively,” said Marwadi Shares and Finance in a statement about the IPO, ET Markets reported.
Ahead of the IPO, Metro Brands announced that it had raised Rs 410 crore from its anchor investors. The business allotted 82.05 lakh equity shares to its anchor investors at Rs 500 each, according a circular from the Bombay Stock Exchange.
Metro Brands retails footwear through its network of stores across India. The business runs the footwear brandsMetro, Mochi, Da Vinchi, Walkway, and J. Fontini and also retails third-party brands in India including Skechers, Clarks, Florsheim, Crocs, and Fitflop, among others.
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