Metro-Brands-Limited-IPO-Feature-Image
IPO Note Metro Brands Limited
Rs 485 – Rs 500 per Equity share Recommendation: Subscribe

    Open FREE* Demat & Trading Account & ₹0 AMC for first year


    Metro Brands Limited IPO Company Profile: – 

    Backed by Rakesh Jhunjhunwala, Metro brand is one of the largest Indian footwear speciality retailers operating on an asset light model with third-party manufacturing through long-standing vendor relationships, optimum store size and layout, and long-term lease arrangements. It is retailing footwear under its own brands of Metro, Mochi, Walkway, J. Fontini and Da Vinchi also certain third-party brands such as Crocs, Clarks, Skechers, , Florsheim, and Fitflop. It also offers accessories such as belts, socks, bags, masks and wallets. Company’s total Store count has grown from 504 in 116 cities to 586 stores across 134 cities during FY19-FY21 and to 598 stores across 136 cities as of September 30, 2021. It aims to utilize proceeds from the Fresh Issue to establish 260 new stores, under various formats.

    Metro Brands Limited IPO Details –

                           Issue Details                                                           
    Objects of the issue ·  Expenditure for opening new stores of the Company, under the “Metro”, “Mochi”, “Walkway” and “Crocs” brands (“New Stores”); and

    ·  General corporate purposes

    Issue Size Total issue Size -Rs. 1367.5 Cr.

    Offer for Sale – Rs.1072.5 Cr.

    Fresh Issue – Rs. 295 Cr.

    Face value Rs.5.00 Per Equity Share
    Issue Price Rs. 485 – Rs. 500
    Bid Lot 30 shares
    Listing at  BSE, NSE
    Issue Opens: 10th Dec, 2021 – 14th Dec, 2021
    QIB 50% of Net Issue Offer
    Retail 35% of Net Issue Offer
    NIB 15% of Net Issue Offer

                           Metro Brands Limited IPO

    Wants To Apply Online

    Trade AnyTime AnyWhere With Elite Empower Mobile App

    Elite-Empower-App-Promotional-Banner

     

    Check Metro Brands Limited IPO Allotment Status

    Go Metro Brands Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

    One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

    1. To Metro Brands Limited IPO Allotment Status
    2. Go to Application Status
    3. Select IPO as Metro Brands Limited IPO
    4. Enter your PAN Number or Application Id or DP Client Id.

     

    Metro Brands Limited IPO

    Application Form

    Metro Brands Limited IPO Financial Performance:

    Metro-Brands- Limited-IPO -Financial- Performance

    Metro Brands Limited IPO Shareholding Pattern:

    Shareholding Pattern Pre- Issue Post Issue
    Promoters & Promoter Group 83.99% 74.27%
    Public 16.01% 25.73%
    Source: RHP, EWL Research

    Metro Brands Limited IPO Strengths:

    • Metro brands is one of the India’s largest pan India footwear retailers
    • Have Wide range of brands and products catering to all occasions across all age groups and market segment
    • Have Efficient operating model through deep vendor engagements and long-standing relationships
    • Presence across multiple formats and channels

    Metro Brands Limited IPO Key Highlights:

    • Revenue from operations grew by of 5.6% in FY20 however declined 37.7% in FY21 due to the impact of COVID which again rebounded with strong 158% revenue growth in H1FY2..
    • EBITDA Margin improved from 21.36% in FY21 to 24.43% in H1FY22.
    • Realization per Unit was Rs.1381 in H1FY22, the highest among key players.
    • Revenue of the company diversified across all region in India with South region represent highest 34.21% in total revenue.
    • Top 50 vendors contributed 77.07% of total in-house products.
    • In most of their arrangements for third party brands, they are required to pay for products only once these products are sold by the company.

    Metro Brands Limited IPO Risk Factors:

    • Premises of all stores and warehouses are leased and may fail to renew these leases on competitive terms
    • Operate in highly competitive footwear retail market and rely on the continued demand for products
    • Dependent on third-parties for the manufacturing of all the products it sell

    Metro Brands Limited IPO Outlook:

    Metro Brands is one of the largest Indian footwear specialty retailer, targets the mid and premium segments in the footwear market. It operates Metro, Mochi and Walkway branded MBOs (Multi Brand Outlets) and Crocs™ branded EBOs (Exclusive Brand outlets). CRISIL Research expects growth momentum in Footwear Industry to pick up and to reach an estimated Rs. 1.4 trillion by Fiscal 2025 from Rs. 1 trillion as of Fiscal 2020, growing at a CAGR of approximately 21% between Fiscal 2021 and 2025. Mid and premium segments in the footwear market expected to grow at a higher rate compared to the total footwear industry. Metro brands have better Net profit margins and highest average selling price compared to its peers. At the higher price band of Rs 500, the offer is made at P/E multiple of 210x of FY21 Post Issue EPS, which is in line compared to its peers Bata India and Relaxo. Considering the future growth prospects we recommend subscribe to the IPO.

    Metro Brands Limited IPO FAQ

    Ans. Metro Brands Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

    Ans. The company will open for subscription on 10 December 2021.

    Ans. The minimum lot size that investors can subscribe to is 30 shares.

    Ans. The Medplus Health Services Ltd IPO listing date is 22 December 2021.

    Ans. The minimum lot size for this upcoming IPO is 30 shares.

    Ans. Link Intime India Pvt Ltd will be the registrar for this upcoming IPO.

    Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

    Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
    For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
    Disclosure Appendix
    Analyst Certification (For Reports)
    Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
    The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
    As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
    (1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
    (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
    For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
    Research Excerpts
    This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
    Company-Specific Disclosures
    Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitewealth.in. with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitewealth.in.
    Options related research:
    If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
    Other Disclosures
    All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
    Ownership and material conflicts of interest Disclosure
    Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
    Country Specific Disclosures
    India – For private circulation only, not for sale.
    Legal Entities Disclosures
    Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
    EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
    1. Reports
    a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
    (b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
    (c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
    2. Compensation
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
    (c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
    3 In respect of Public Appearances
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL

    Need An Assistance:

      Product Interested