Rakesh Jhunjhunwala-Backed Metro Brands Ends Higher After Listing At 12.6% Discount
The footware retailer's stock listed at Rs 437 apiece, a 12.6% discount to its IPO price of Rs 500.
Shares of Metro Brands Ltd. declined on market debut but quickly recovered to pare all the losses.
The Rakesh Jhunjhunwala-backed footwear retailer's stock listed at Rs 437 apiece, a 12.6% discount to its IPO price of Rs 500, on the National Stock Exchange. The stock fell to Rs 426 before rebounding to an intraday high of Rs 489.85, up 11%. The stock closed at Rs 502, up 0.4% over its issue price.
The company's initial public offering—comprising a Rs 295-crore fresh issue and an offer for sale of 2.14 crore equity shares by promoters and other shareholders—was subscribed 3.64 times.
Jhunjhunwala, the third-largest shareholder owning 14.73% in the company, did not dilute any stake.
The 66-year-old Metro Brands operates on an asset-light model with third-party manufacturing through more than 250 vendors and lease arrangements. It owns brands such as Metro, Mochi, Da Vinchi, Walkway and J Fontini, and retails third-party brands such as Crocs, Skechers, Clarks, Florsheim and Fitflop.
As on Sept. 30, the company operated 598 stores across 136 cities.