Metro Brands IPO

Rakesh Jhunjhunwala-backed footwear retailer Metro Brands Limited is one of the India’s Biggest footwear specialty stores, as well as one of the most coveted Indian footwear brands. Metro Brands IPO will hit the stock market in 10 December 2021.

About Metro Brands

Metro Brands Limited established their first Metro store in Mumbai in 1955, and since then, they’re  grown into a one-stop shop for all footwear requirements, selling a comprehensive selection of branded items for men, women, unisex, and kids, as well as for any occasion including casual and formal occasions.

Their Company operates 586 Stores (as described below) in 134 cities across 29 Indian states and union territories as of March 31, 2021.

Between Fiscal 2020 and 2025, they plan to focus on the economy, mid, and premium sections of the footwear market.

These Sections are anticipated to develop at a faster rate than the overall footwear industry.  There are more organised participants in these segments.

Growth

Metro Brands Limited had the third-highest number of exclusive retail locations in India in Fiscal 2021. They had an EBITDA Margin of 27.72 percent, 27.51 percent, and 21.36 percent in Fiscal 2019, 2020, and 2021, respectively.

In Fiscal 2019, 2020, and 2021, they had Realization per Unit of 1,321.29, 1,345.80, and 1,327.96, respectively, based on revenue from Total Product Sales divided by volume of Total Product Sales.

From Fiscal 2019 to Fiscal 2021, they had the best Realization per Unit of the two top players in India. They have the best operating margins among India’s major companies in Fiscal 2020.

In addition, they had the best net profit margin of 8.1 percent among footwear companies in 2021.

Brands & Other Business

They sell footwear under the Metro, Mochi, Walkway, Da Vinchi, and J. Fontini brands, and also third-party brands including Crocs, Skechers, Clarks, Florsheim, and Fitflop, which complement their own brands.

These brands, they feel, have pan-India appeal throughout geographies. Their outlets also sell items including belts, handbags, socks, masks, and wallets.

Metro Brands Limited
Credit – Metro Brands Limited

Through their joint venture, M. V. Shoe Care Private Limited, they also sell footcare and shoe-care goods in their stores, making them a one-stop-shop for all footwear and associated items for their consumers.

Their retail operations are conducted through its shops, partners, and internet platforms.

Business Approach

To better control consumer experience at their locations, we generally adopt the “company owned and company operated” (“COCO”) model of retailing via our own Multi Brand Outlets (“MBOs”) and Exclusive Brand Outlets (“EBOs”).

They run Metro, Mochi, and Walkway MBOs, as well as CrocsTM EBOs. In addition, their company and its subsidiary Metmill run shop-in-shops (“SIS”) in prominent retail stores in India.

MetMill also distributes third-party brand items as well as retail products via franchisees. MBOs, EBOs, SIS, and franchisees are collectively called to as “Stores” in the Draft Red Herring Prospectus.

All of their brands are featured and sold on a variety of prominent B2C and B2B marketplaces.

Metro Brands IPO

Metro Brands Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 250 crore value equity share & 21,900,100 Equity Shares on 20 August 2021.

The offer includes 250 Crore value equity shares fresh equity shares and There is an offer for sale (OFS) of 21,900,100 equity shares by the promoters mentioned in the DRHP.

IPO
IPO

They got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 29 November 2021.

Financials Trends

 
Particulars For the year/period ended ( in Cr.)
31-Mar-21 31-Mar-20 31-Mar-19
Total Assets 1,659.34 1,617.42 1,321.51
Total Revenue 878.54 1,311.07 1,236.90
Profit After Tax 64.62 160.58 152.73

Basic and Diluted Earnings Per Share

Financial Period Basic EPS (in INR) Diluted EPS (in INR) Weight
Financial Year 2021 2.43 2.43 3
Financial Year 2020 6.05 6.05 2
Financial Year 2019 5.75 5.75 1
Weighted Average 4.19 4.19

Objects of the Issue

  • Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
  • To meet common corporate objectives.

Basis of the offer

  • In the fast-growing footwear retail sector, one among India’s leading pan-India footwear retailers with a brand appeal across aspirational client groups.
  • Customers are loyal to a wide selection of brands and goods that appeal to all occasions across market categories.
  • Deep vendor relationships and a TOC-based supply chain provide for an efficient operating strategy.
  • Set up a light firm with a lean operational style that leads to long-term profitable development.
  • Availability in a variety of formats and channels.
  • Third-party brands wanting to expand in India can use this platform.
  • Strong promoter background, as well as an experienced leadership team with a track record and a high level of staff ownership.
  • Growth, profitability, and financial discipline have all been proven in the past.

Metro Brands IPO Peer Comparison

S. No. Face Value Company Name PE
1 5 Bata India Limited N/A
2 1 Relaxo Footwears Limited 99.07

Industry Peer data was obtained from the following source:. On July 12, 2021, the closing NSE price of these equity shares was collected from the NSE website.

Metro Brands IPO Details

IPO Opening Date 10 December 2021
IPO Closing Date 14 December  2021
Issue Type Book Building
Face Value 5 per share
IPO Price 485 to 500 per equity share
Market Lot 30
Min Amount 15,000
Listing At BSE, NSE
Issue Size 1,367.51 Cr
Fresh Issue 250 Crore
Offer for Sale 21,900,100 Crore

Metro Brands IPO Date

Metro Brands IPO opening date is 10 December  2021, and the closing date is 14 December  2021. The Metro Brands issue may list in 22 December 2021.

IPO Opening Date 10 December  2021
IPO Closing Date 14 December 2021
Basis of Allotment Date 17 December  2021
Initiation of Refunds 20 December 2021
Credit of Shares to Demat Account 21 December 2021
IPO Listing Date 22 December  2021

Basis of Allotment

Type % of Offer Basis of Allotment
Qualified Institutional Buyer 50
Roughly 
equivalent
Non Institutional Investor 15
Roughly 
equivalent
Retail 35 Minimum level of 1 lot, based on availability, for every shareholder.

Metro Brands IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Metro Brands IPO.

Metro Brands IPO GMP

Metro Brands IPO Grey Market Premium is 0.

Date GMP (in Rs) Subject to Sauda Kostak (in Rs)
21 December 2021 No Trade No Trade No Trade
20 December 2021 No Trade No Trade No Trade
19 December 2021 No Trade No Trade No Trade
18 December 2021 No Trade No Trade No Trade
17 December 2021 No Trade No Trade No Trade
16 December 2021 19 2600 300
15 December 2021 15 1600 200
14 December 2021 16 1100 100
13 December 2021 27 1900 200
12 December 2021 30 1300 150
11 December 2021 40 1700 200
10 December 2021 50 1700 200
09 December 2021 60 2500 250
08 December 2021 No Trade No Trade No Trade
07 December 2021 No Trade No Trade No Trade
06 December 2021 No Trade No Trade No Trade
05 December 2021 No Trade No Trade No Trade
04 December 2021 No Trade No Trade No Trade

Metro Brands IPO Review

You can avoid Metro Brands IPO for listing gains & You may apply for long term view.

Metro Brands IPO Risk

  • The ongoing COVID-19 epidemic has had a substantial impact on their business, especially now and in the future.
  • They may not be effective in maintaining and increasing brand visibility.
  • All of their stores and warehouses are leased spaces.
  • For the production of all of the items they sell, they rely on third parties.
  • The selling of third-party brands accounts for a major amount of their revenue.
  • Their company, directors, and promoters are the subject of ongoing legal actions. Any negative conclusion in these proceedings might have a negative impact on their company.
  • Breakdowns in technology might interrupt their operations and have a negative impact on its company operations and financial condition.

Other Threats

  • The rise of internet merchants may put pressure on prices, increase competition, and have a negative impact on their business.
  • They may be unable to expand their business in semi-urban regions, which might be negative to their company.
  • They work in a competitive market, and any rise in competition might hurt their bottom line.
  • No impartial body has assessed their financial needs or the anticipated distribution of Net Proceeds.
  • With the majority of their vendors, they do not have formal agreements or set conditions of trade.
  • Their transportation requirements are met by other parties.
  • Seasonality is a factor in their business. Lower revenues over the holiday season of any fiscal year may have a negative impact on their company.

Business Model

In their MBOs, they try to maximise their mix of in-house and third-party brands to increase client traffic, sales density, and gross margins. In Fiscal 2021, sales from in-house and third-party brands sold in their MBO stores accounted for 69.24 percent and 30.76 percent of their firm’s MBO revenue, respectively.

To address changing business trends, they use their deep knowledge of the retail footwear industry and data analytics to design and launch margin-enhancing in-house brands.

They actively pick their products with regional tastes in mind. Their diverse brand portfolio enables them to serve customers in the economic (501 to 1,000), mid (1,001 to 3,000), and premium (beyond 3,001) sectors.

Stores

The total number of stores in their company has increased from 504 in 116 locations as of March 31, 2019 to 586 in 134 regions as of March 31, 2021.

As of March 31, 2021, they have a pan-India presence via their Store network, which is distributed throughout 29 states and union territories in India, and they have launched 113 new MBOs (containing seven via franchising) and 98 new EBOs in the previous three fiscal years.

We’re also working to expand their Walkway brand’s retail footprint by partnering with franchisees.

Their firm manages outlets with total Retail Business Areas of 643,442 sq. ft., 694,955 sq. ft., and 720,994 sq. ft., correspondingly, as of March 31, 2019, 2020, and 2021.

Metro Brands IPO Brokerage views

  • Yes Securities : Not Updated
  • Choice Brokering: Not Updated
  • Axis Securities: Not Updated
  • IIFL Securities: Not Updated
  • Trade swift: Not Updated
  • Anand Rathi : Not Updated
  • ICICI Securities: Not Updated

Metro Brands IPO Subscription Status

Date Day QIB NII Retail Employees Total Subscription
10 December  2021 1 0.00 0.02 0.52 N/A 0.27
13 December  2021 2 0.16 0.17 0.87 N/A 0.52
14 December 2021 3 8.49 3.02 1.13 N/A 3.64

Promoters

  • Rafique A. Malik,
  • Farah Malik Bhanji,
  • Alisha Rafique Malik,
  • Rafique Malik Family Trust
  • Aziza Malik Family Trust

Promoters’ Holding

Pre Issue Share Holding 68.45%
Post Issue Share Holding

Metro Brands IPO Prospectus

Contact Details

Metro Brands Limited
401, Zillion, 4th Floor,
LBS Marg & CST Road Junction
Kurla (West), Mumbai- 400 070,
Maharashtra, India
Tel: + (91) 22 2654 7700
E-mail: [email protected]
Website: www.metrobrands.com

Registrar

Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West,
Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in

Lead Manager(s)

  1. Axis Capital Limited
  2. Ambit Private Limited
  3. ICICI Securities Limited
  4. DAM Capital Advisors Limited
  5. Equirus Capital Private Limited
  6. Motilal Oswal Investment Advisors Limited

We hope we are able to answer all your questions about Metro Brands IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.

Disclaimer

The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.

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Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.

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Note:

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FAQ

Metro Brands IPO Opening Date?

Metro Brands IPO will open in 10 December 2021.

Metro Brands IPO Listing Date?

Metro Brands IPO will list in 22 December 2021.

Metro Brands IPO GMP Today?

Metro Brands IPO Grey Market Premium is INR 0.

Metro Brands IPO Allotment Date?

Metro Brands IPO basis of allotment will be in 17 December 2021.

Lot size for Metro Brands IPO?

Lot size for Metro Brands IPO is 30.

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