Metro Brands debuts on a negative note with a 12.8% discount

• Shares of Metro Brands list at ₹436 while the shares were allotted at ₹485 per share.
• The IPO was subscribed 3.64 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹11,837 crore.

Marquee investor Rakesh Jhunjhunwala-backed Metro Brands, which is one of the largest Indian footwear specialty retailers in India, made a weak listing on the National Stock Exchange (NSE) and BSE at a 12.8% discount on the issue price of ₹485 apiece.

Metro Brands issue was expected to open at a discounted price due to weak grey market premium and analyst commentary on the company’s finances. The company’s financial performance in FY21 was not very great due to COVID-19 restrictions in the country that affected the entire footwear retailing segment.

Its revenue from operations declined by 37.75% in FY21. In the meantime, it permanently closed 24 stores, due to significant decline in footfalls on account of COVID-19.

Post-listing, the market capitalisation of the company stood at ₹11,837 crore, according to BSE data.

The shares of Metro Brands were trading at ₹446.70, lower by 10.66% at 10.01 a.m., on December 22. The grey market had also indicated a discounted listing for Metro Brands a day prior to the listing.

The IPO was open between December 10 and December 14 ⁠and was oversubscribed 3.64 times by investors. The company intended to raise ₹1,367 crore through this public issue.

Started in 1955 as a footwear specialty retailer in India, Metro Brands now caters to footwear needs of men, women, unisex and kids.

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