Rakesh Jhunjhunwala-backed Metro Brands IPO to open on December 10

The initial share-sale of footwear retailer Metro Brands Ltd, which is backed by Rakesh Jhunjhunwala, will open for public subscription on December 10.

The initial public offering (IPO) will conclude on December 14, according to the red herring prospectus.

The initial share-sale comprises fresh issuance of equity shares worth Rs 295 crore and an offer for sale of 2.14 crore equity shares by promoters and other shareholders.

Through the IPO, the company's promoters will offload nearly 10 per cent stake. Post the IPO, the promoter and promoter group holding in the company will come down to 75 per cent from the current level of around 85 per cent.

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Proceeds of the fresh issue will be used towards expenditure for opening new stores of the company, under the 'Metro', 'Mochi', 'Walkway' and 'Crocs' brands and for general corporate purposes.

At present, the company has 586 stores in 134 cities spread across India. Of these, 211 stores were opened in the last three years. The company is an Indian footwear retailer targeting the economy, mid and premium segments in the footwear market.

It opened its first store under the Metro brand in Mumbai in 1955 and has 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.

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