Rakesh Jhunjhunwala backed Metro Brands IPO opens today: Should you subscribe?

New Delhi: The IPO of Footwear retailer Metro Brands Ltd, which is backed by ace investor Rakesh Jhunjhunwala will kick off on Friday.

At present, the company has 598 stores in 136 cities spread across India.

Here are 10 key points on Rakesh Jhunjhunwala backed Metro Brands IPO

1. 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.

2. Through the IPO, the company's promoters will offload nearly 10 per cent stake. Currently, the promoters and promoter group hold 84 per cent stake in the company.

3. The issue, with a price band of Rs 485-500 per share, opens for public subscription on December 10 and will conclude on December 14.

4. At the upper end of the price band, the public issue is expected to fetch Rs 1,367.5 crore.

5. 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.

6. Ahead of its IPO, on Thursday the company said that it has collected a little over Rs 410 crore from anchor investors.

7. The company has allotted 82.05 lakh equity shares to anchor investors at Rs 500 apiece, taking the total transaction size to Rs 410.25 crore, according to a BSE circular.

8. Societe Generale, Goldman Sachs, Abu Dhabi Investment Authority, HDFC Life Insurance Company, SBI Life Insurance Co Ltd, Tata AIA Life Insurance Co Ltd, HDFC Mutual Fund (MF), Aditya Birla Sun Life MF, Sundaram MF and ICICI Prudential MF are among the anchor investors.

9.  Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors. Investors can bid for a minimum of 30 equity shares and in multiples thereof.

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

With PTI Inputs