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Metro Brands IPO Subscribed 0.52 Times On Day 2

Get the latest subscription updates from day two of Metro Brands IPO.

<div class="paragraphs"><p>A pair of Crocs brand sandal sold by Metro Shoes. (Source: Company website)</p></div>
A pair of Crocs brand sandal sold by Metro Shoes. (Source: Company website)

Metro Brands Ltd., backed by billionaire investor Rakesh Jhunjhunwala, saw muted demand for its initial public offer as the second-day bidding resumed on Monday.

The issue was subscribed 27% on the first day, led by demand from retail investors.

The maiden offer of the footwear retailer comprises a fresh issue of Rs 295 crore and an offer for sale of 2.14 crore equity shares by promoters and other shareholders, according to its red herring prospectus.

The company is estimated to fetch Rs 1,368 crore at the upper end of the price band of Rs 485-500 apiece. The issue will close on Dec. 14.

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Promoters—Rafique A Malik, Farah Malik Bhanji, Alisha Rafique Malik, Rafique Malik Family Trust and Aziza Malik Family Trust—hold 68.43% stake in the company, while the promoter group holds 15.57%. After listing, their shareholding will fall to 62.15% and 12.12%, respectively.

Jhunjhunwala, the third-largest shareholder owning 14.73% in the company, isn't diluting any stake.

Subscription Details: Day 2

The IPO was subscribed 0.52 times, or 52%, as of 5 p.m. on Dec. 13.

  • Institutional investors: 0.16 times.

  • Non-institutional investors: 0.17 times.

  • Retail investors: 0.87 times.

Watch BloombergQuint's IPO Adda With Metro Brands' Management