Metro Manufacturers IPO will feature a fresh issuance of equity shares worth Rs 250 crore and an offer-for-sale of 21,900,100 equity shares by selling shareholders, according to the DRHP.
Metro Brands Ltd., backed by Rakesh Jhunjhunwala, has appealed to the market regulator for clearance of its IPO.
In India, Metro Shoes is a multi-brand footwear store business. Due to low leasing prices, particularly in tier II cities, the company was able to expand the number of its retail locations in 2013.
Metro Shoes operates a nationwide network of exclusive Metro showrooms in over 206 prominent sites across India’s 100+ cities.
According to the draft prospectus filed with the Securities and Exchange Commission of India, the business plans to raise Rs 250 crore through a new issue of equity shares and also make an offer to sell 2.19 crore shares owned by promoters, promoter groups, and other investors.
The company, which owns Metro, Mochi, Walkway, and Crocs, will contemplate pre-IPO financing of Rs 10 crore. The size of the new issue will be reduced once such a placement is accomplished.
The company’s promoters are Rafique A. Malik, Farah Malik Bhanji, Alisha Rafique Malik, Rafique Malik Family Trust, and Aziza Malik Family Trust. The promoter group also includes Metro Shopping Plaza Pvt. and Metro Shopping Arcade Pvt.
The proceeds of the new issue will be used to fund expenses for the company’s new stores under the “Metro,” “Mochi,” “Walkway,” and “Crocs” brands, as well as general business objectives.
Indian footwear store backed by Rakesh Jhunjhunwala the ace investors caters to the mid and premium segments of the market.
As of March 31, billionaire investor Jhunjhunwala owned 14.75% of the company. The remaining funds from the IPO would be utilised for general business reasons, while Metro Brands expects to use Rs.188.1 billion to open 219 new stores.
It launched its first Metro store in Mumbai in 1955 and has since expanded into a one-stop shop for all footwear needs, selling a large choice of branded products for men, women, unisex, and children, as well as for any occasion including casual and formal events.
Metro Brands had 586 shops in 134 cities across India as of March 31. It is active in 29 states and three federally administered territories.
FY21 Financials Revenue was Rs 800 crore, down 37.7% from the previous year. The company’s net profit fell to Rs 64.6 crore from Rs 160.6 crore a year ago.
The book-running lead managers for the IPO include Axis Capital Ltd., Ambit Pvt., DAM Capital Advisors Ltd., Equirus Capital Pvt., ICICI Securities Ltd., and Motilal Oswal Investment Advisors Ltd.
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