The Metro IPO trademark was registered 3.64 times on the last day of release
According to registration data on stock exchanges, Metro Brand-backed Ace Rakesh Jhunjhunwala investor registered for an initial public offering (IPO) 3.64 times on the third and final day of the IPO. onion. The IPO of the leading fotwear retailer opened for registration on December 10 and closed today, December 13. Metro Brands has fixed the price band at Rs 485 – 500 per par share. price Rs 5/share.
On Tuesday, the section for qualified institutional buyers or QIBs was registered 8.49 times – the highest among the three investor groups. The section for non-institutional investors has been registered 3.02 times, while the section for retail individual investors has been registered 1.13 times today.
At the higher price point, the offer costs Rs 1,367.5 crore. This offering consisted of a new share issue of Rs 295 crore and an offer to sell of Rs 1,072.5 crore by the company promoting the sale to shareholders who had sold off 2.14 crore of equity shares. .
A portion of the proceeds from the IPO will be used to finance the opening of new stores by the company under the brands “Metro”, “Mochi”, “Walkway” and “Crocs”.
” At the upper end of the price range, the Metro Brands IPO is valued at 210 times higher Price/Earnings than FY21 EPS (on a fully diluted basis), due to low prior year earnings. than. If we calculate the earnings from April 21 to September 21 every year, the IPO is valued at about 158 times, which is still very positive.
However, peers Relaxo Footwear (108x) and Bata India are also trading at very high valuations. Relaxo Footwear has a higher rate of return than the other two products. Metro Brands Limited is one of the largest specialty footwear retailers in the country and caters to footwear needs through a wide range of branded products.
With the company’s strong product configuration, asset-light business model, healthy margins, strong sentiment among margin investors but overvalued valuation, investors have a taste for Higher risk and long-term perspective may consider investing in this,” registered investment advisor SEBI INDmoney said in a report.
