The IPO comprises fresh issuance of equity shares worth ₹250 crore and an offer-for-sale of 21,900,100 equity shares by selling shareholders, as per the DRHP
Indian footwear retailer Metro Brands has filed preliminary documents with market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
The initial share sale comprises fresh issuance of equity shares worth ₹250 crore and an offer-for-sale (OFS) of 21,900,100 equity shares by selling shareholders, according to the DRHP. As part of the OFS, selling shareholders will offload up to 13,195,000 equity shares, promoters will put up 8,697,000 equity shares and promoter group will sell 8,100 equity shares.
“Each of the selling shareholders will be entitled to the proceeds of the offer for sale after deducting its portion of the offer related expenses and relevant taxes thereon. Our company will not receive any proceeds from the offer for sale and the proceeds received from the offer for sale will not form part of the net proceeds," the document read.
Metro Brands said it will consider a pre-IPO placement aggregating up to ₹10 crore in the issue. If this placement is achieved, the fresh issue size will be reduced, it added.
Out of the net proceeds from the IPO, ₹188.06 crore will be used for opening new stores of the company, “under the Metro", “Mochi", “Walkway" and “Crocs" brands", and the rest will be utilised towards for general corporate purposes. Metro Brands plans to open 219 stores under its different brands. The entire net proceeds will be deployed by the end of financial year 2024-25, Metro Brands said.
“However, if the net proceeds are not completely utilised for the objects stated above by the end of financial year 2025, such amounts will be utilised (in part or full) in subsequent periods, as determined by us, in accordance with applicable law," it added.
Metro Brands opened its first store under the Metro brand in Mumbai in 1955, and have since evolved into a one-stop shop for all footwear needs, by retailing a wide range of branded products for the entire family including men, women, unisex and kids, and for every occasion including casual and formal events.
As of March, 2021, the company operated 586 stores across 134 cities spread across 29 states and union territories in India.
Backed by ace investor Rakesh Jhunjhunwala, the company caters to with interests in the economy, mid and premium segments of the footwear market.
The company sells footwear under its own brands, namely Metro, Mochi, Walkway, Da Vinchi and J. Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop.
Metro Brands has appointed Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors as merchant bankers to advise the company on the IPO.
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