Rakesh Jhunjhunwala-Backed Footwear Retailer Metro Brands raises Rs 410 Cr From Anchor Investors Ahead of Listing

The company has allotted 82.05 lakh equity shares to anchor investors at Rs 500 apiece, taking the total transaction size to Rs 410.25 crore, according to a BSE circular

New Delhi: Footwear retailer Metro Brands Ltd, which is backed by ace investor Rakesh Jhunjhunwala, on Thursday said it has collected a little over Rs 410 crore from anchor investors ahead of its IPO roll-out on Friday, according to PTI.

The company has allotted 82.05 lakh equity shares to anchor investors at Rs 500 apiece, taking the total transaction size to Rs 410.25 crore, according to a BSE circular.

Societe Generale, Goldman Sachs, Abu Dhabi Investment Authority, HDFC Life Insurance Company, SBI Life Insurance Co Ltd, Tata AIA Life Insurance Co Ltd, HDFC Mutual Fund (MF), Aditya Birla Sun Life MF, Sundaram MF and ICICI Prudential MF are among the anchor investors.

The initial share-sale comprises fresh issuance of equity shares worth Rs 295 crore and an offer for sale of 2.14 crore equity shares by promoters and other shareholders.

Through the IPO, the company's promoters will offload nearly 10 per cent stake. Currently, the promoters and promoter group hold 84 per cent stake in the company.

The issue, with a price band of Rs 485-500 per share, opens for public subscription on December 10 and will conclude on December 14.

At the upper end of the price band, the public issue is expected to fetch Rs 1,367.5 crore.

Proceeds of the fresh issue will be used towards expenditure for opening new stores of the company, under the 'Metro', 'Mochi', 'Walkway' and 'Crocs' brands and for general corporate purposes.

At present, the company has 598 stores in 136 cities spread across India.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors.

Investors can bid for a minimum of 30 equity shares and in multiples thereof.

The company is an Indian footwear retailer, targeting the economy, mid and premium segments in the footwear market.

It opened its first store under the 'Metro' brand in Mumbai in 1955 and has since evolved into a one-stop shop for all footwear needs.

Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book running lead managers to the IPO.

(Except for the headline, this report has not been edited by ABP Live staff)