Metro Brands IPO Subscription Status Day 3: Issue booked 3.64 times, QIBs portion filled most by 8.49 times

The Initial Public Offer (IPO) of Ace investor Rakesh Jhunjhunwala-backed Metro Brands was subscribed 3.64 times at 05:00 pm on the final day of the offer. It received 6,96,12,480 bids against 1,91,45,070 shares on offer for this issue. 

This is the second Jhunjhunwala-backed company that came out with its initial public offer this month. Earlier, another Indian billionaire's company Star Health shares were listed at discount on the bourses.  

Retail Individual Investors (RIIs) portion was subscribed 1.13 times around the same time. The NIIs booked the issue 3.02 times, while it QIBs category that saw maximum bidding as Qualified Institutional Buyers(QIBs) subscribed the issue 8.49 times on the last day till 05:00 pm.

See Zee Business Live TV Streaming Below:

The IPO was subscribed 0.52 times on Day 2 and 0.7 times on opening day of the offer.

The initial public offering (IPO) of Rakesh Jhunjhunwala-backed Metro Brands Ltd. (MBL) had opened for subscription on December 10 and will close today, December 14, 2021. The price band for Rs 1,370 crore IPO has been set at Rs 485 to 500 per share.    

Metro Brands is offering 2.735 - 2.753 crore shares (fresh issue: 0.590 - 0.608cr shares; OFS shares: 2.145cr shares) . The offer represents around 10.07% of its post-issue paid-up equity shares of the company. Total IPO size is Rs. 1,335.3 - 1,367.5 crore.  

The issue is a combination of fresh and OFS. The company will not receive any proceeds from the OFS part of the issue, while Rs 225 crore from the net fresh issue proceeds will be utilized to fund the expenditure for opening new stores of the company.
As per the IPO details, as much as 50% of the net issue is reserved for qualified institutional buyers, while 15% and 35% of the net issue is reserved for non-institutional bidders and retail investors, respectively.
Promoter currently holds an 83.99% stake in the company and post-IPO, which will come down to 74.27%. Public holding will increase from the current 16.01% to 25.73%.
MBL is among the top-5 footwear brands in India and is ranked fourth in the domestic footwear market (in terms of sales inFY21). Among the major footwear retailer, it has the highest net profit margin in FY21 and top performer in terms of operating margin during FY15-21. The company is among the aspirational Indian brands in the footwear category (i.e. catering to mid and premium segments) and thus have higher retail ASP than the average market, as per Choice Broking.