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Metro Brands IPO: The public issue of one of India's largest Indian footwear specialty retailers is opening for subscription on 10th December 2021 and it will remain open till 14th December 2021. This Rakesh Jhunjhunwala-backed company aims to raise 1,367.51 crore from this public issue ( 295 crore from fresh issue and 1,072.51 crore from Offer for Sale or OFS). Price band of the book build issue has been fixed at 485 to 500 per equity share. According to market observers, shares of Metro Brands are trading at a premium of 40 in the grey market today.

We list out 10 important points in regard to Metro Brands IPO details:

1] Metro Brands IPO GMP: As per the market observers, Metro Brands IPO GMP today is 40, which is 30 lower from its yesterday's grey market premium (GMP) of 70. They said that volatility in the share price ahead of subscription opening date is normal and much will depend on how investors respond to this Rakesh Jhunjhunwala-backed public issue.

2] Metro Brands IPO subscribe or not: Giving its review and 'subscribe' tag to this Rakesh Jhunjhunwala-backed company's public issue, Choice Broking report says, "MBL is one of the largest footwear retailers with around 3-4% market share in the organized market space and assigned subscribe rating to the IPO. In FY21, whole footwear retailing was impacted by the pandemic-led restrictions. Thus, we have benchmarked the IPO valuation to the performance during FY19-20. At a higher price band of 500, MBL is demanding a P/E multiple of 89.2 (to its average earnings of 5.6 per share over FY19-20), which is a premium to peer average multiple of 71.7. It has reported strong financial performance with robust cash flow generation. The company is consistently paying dividends since FY2000. Thus, we assign a “Subscribe for Long Term" rating for the issue."

3] Metro Brands IPO price band: Company management has fixed the issue price band at 485 to 500 per equity share.

4] Metro Brands IPO lot size: The public issue will be available in lots and one lot will comprise 30 shares.

5] Metro Brands IPO application limit: A bidder can apply for minimum one lot whereas one bidder can apply for maximum 13 lots. So, a bidder can file 1 to 13 IPO applications.

6] Metro Brands IPO investment limit: As one bidder can apply for 1 to 13 lots, minimum amount required to apply for this Rakesh Jhunjhunwala-backed company's public issue is 15,000 ( 500 x 30) whereas maximum investment in the IPO is capped at 1,95,000 [( 500 x 30) x 13].

7] Metro Brands IPO allotment date: The tentative date for share allocation is 17th December 2021.

8] Metro Brands IPO registrar: The official registrar of this IPO is Link Intime India Private Ltd.

9] Metro Brands IPO listing date: Shares of this Rakesh Jhunjhunwala-backed company will list on both NSE and BSE and the expected date of share listing is 22nd December 2021.

10] Metro Brands IPO promoters' holding: After listing of Metro Brands shares, promoters’ shareholding in the company will come down from 84.02 per cent to 74.27 per cent.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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