Footwear major Metro Brands made a tepid debut on the bourses on Wednesday, listing at nearly 13 per cent discount over its issue price of ₹500.
Metro Brands listed at ₹436 on the BSE, a discount of 12.8 per cent. It surged to a high of ₹455.00, and recorded a low of ₹426.10. At 10:09 am, it was trading at ₹450.95, 9.81 per cent discount over its IPO price.
On the NSE, it listed at ₹437, a 12.60 per cent discount over its issue price. The Rakesh Jhunjhunwala-backed company had fixed the IPO price at ₹500, at the upper end of the price band of ₹485-500.
The IPO was subscribed 3.64 times. While the QIB portion was subscribed 8.49 times, non-institutional investors and the retail portion were subscribed 3.02 times and 1.13 times, respectively.
Metro Brands has garnered ₹1,367.5 crore through the IPO. The offer comprised a fresh issue of ₹295 crore, and an offer for sale of ₹1,072.5 crore by the promoters.
‘Underrated sector’
Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd, said, “Metro Brands Limited has shown growth, profitability, and financial discipline in the past, but the sector is widely underrated. The company has an asset-light business model and derives most of its revenues from third parties.”
However, according to Agrawal, “We are seeing a change in IPO sentiment amid a slight decline in the market, and the last two debutants witnessed profit bookings post-listing, as well we are seeing a decline in the GMP for upcoming IPOs.”