Rakesh Jhunjhunwala-Backed Metro Brands Seeks SEBI Nod For IPO

Picture of a pair of woman's sandal's sold by Metro Shoes. (Source: Metro Shoes Twitter account)

Rakesh Jhunjhunwala-Backed Metro Brands Seeks SEBI Nod For IPO

Rakesh Jhunjhunwala-backed footwear retailer Metro Brands Ltd. has sought the market regulator’s approval for its initial public offering.

The company is looking to raise Rs 250 crore through a fresh issue of equity shares and also conduct an offer-for-sale of 2.19 crore shares owned by promoters, promoter group and other investors, according to the draft red herring prospectus, filed with the Securities and Exchange Board of India.

The company which operates brands such as Metro, Mochi, Walkway, and Crocs will consider a pre-IPO placement aggregating up to Rs 10 crore. If such placement is completed, the fresh issue size will be reduced.

Rafique A. Malik, Farah Malik Bhanji, Alisha Rafique Malik, Rafique Malik Family Trust, and Aziza Malik Family Trust are the promoters of the company. Metro Shopping Plaza Pvt. and Metro Shopping Arcade Pvt. among others are part of the promoter group.

Jhunjhunwala's Stake

Billionaire investor Jhunjhunwala held a 14.75% stake in the firm, as of March 31.

Metro Brands plans to use Rs 188.1 crore to open 219 new stores, while the remaining proceeds from the IPO will be used for general corporate purposes.

Metro Brands operated 586 stores across 134 cities in India, as of March 31. It has a presence in 29 states and three union territories.

Also read: Rakesh Jhunjhunwala-Backed Star Health Seeks SEBI Nod For IPO

FY21 Financials

  • Revenue fell 37.7% over the preceding fiscal to Rs 800 crore.

  • Net profit narrowed to Rs 64.6 crore from Rs 160.6 crore a year earlier.

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

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