Rakesh Jhunjhunwala-Backed Footwear Retailer Metro Brands Set To Launch IPO This Week. Check Details

The IPO will open for public subscription on December 10 and conclude on December 14

Rakesh Jhunjhunwala | (File Photo/ Getty Images)

New Delhi: The initial public offering (IPO) of footwear retailer Metro Brands Ltd backed by investor Rakesh Jhunjhunwala often referred to as India’s Warren Buffet,  will open on Friday, December 10 for subscription.

The homegrown footwear retailer targets the economy, mid and premium segments in the footwear market.

Here’s what investors should know about the issue

The Rs 1,368-crore issue will remain open for three days. The price band has been fixed at Rs485-500 per share.

The IPO will open for public subscription on December 10 and conclude on December 14. The bidding for anchor investors will open on December 9, according to the company.

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, according to PTI.

Through the IPO, the company's promoters will offload nearly 10 per cent stake. At present, the promoters and promoter group hold an 84 per cent stake in the company. At the upper end of the price band, the public issue is expected to garner Rs 1,367.5 crore.

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

The company retails footwear own-brands like Metro, Mochi, Walkway, Da Vinchi and J Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim and Fitflop. It also offers accessories, such as belts, bags, socks, masks and wallets at its stores.

It aims to use to proceeds towards expenditure for opening new stores 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. Of these, 211 stores were opened in the last three years.