Metro Brands IPO: Looking at Rs 3,000 crore valuation at listing

1 month ago 22

Mumbai-based footwear institution Metro Brands is readying to rise upto Rs 295 crore done its upcoming archetypal nationalist offering (IPO) astatine a valuation of adjacent to Rs 3,000 crore. The institution that markets footwear nether brands similar Crocs, Mochi, Walkway and Metro, wants to money its retail enlargement from the IPO proceeds, apical officials said.

According to Nissan Joseph, main enforcement astatine Metro, the absorption plans to adhd adjacent to 260 company-owned and operated stores. In the past 3 years, since end-FY2018, it has grown retail beingness by 43 per cent - from 419 stores successful end-FY2018 to 598 now.

Currently, the firm’s promoters clasp 84.02 per cent of the shares, portion capitalist Rakesh Jhunjhunwala owns 14.7 per cent successful the company, followed by immoderate 1 per cent shares that are held by its employees. Post-IPO, holdings of Jhunjhunwala is acceptable to travel down, though the ace capitalist is not selling immoderate of his shares during the listing. According to Kaushal Parekh, main fiscal serviceman astatine Metro Brands, adjacent to 10 per cent of the firm’s shares volition beryllium offered to the public, which volition see caller issues and promoter held shares. The promoter radical volition proceed to clasp immoderate 75 per cent of the company’s shares aft listing, helium said.

Founded conscionable aft the country’s independence, Metro Brands opened its archetypal store successful Mumbai successful 1955, the institution has doubled its store number since FY2015. While its nett income person astir doubled since FY2014 - from Rs 636 crore to Rs 1,209 crore successful FY2020. Last year, its concern suffered owed to stringent lockdowns and different COVID related disruptions. In FY2021, it raked successful Rs 788 crore successful sales, portion its margins shrank. Its net earlier interest, tax, depreciation and amortisation (EBITDA) fell to 17.12 per cent successful FY21 from 21.41 per cent successful FY18. Net nett borderline stood astatine 9.44 per cent - lowest successful a decade.

According to Parekh, Metro has managed to retrieve immoderate of the mislaid crushed since the lockdowns and its income successful the archetypal fractional of FY22 grew 150 per cent year-on-year to Rs 456 crore. Footfall astatine its outlets person besides recovered backmost to pre-COVID levels. “In fact, income during the July-September 4th was higher than pre-COVID level”, said Joseph.

Apart from focusing connected enlargement of carnal presence, the steadfast is investing successful its online organisation channels arsenic well. According to the institution management, stock of the e-commerce channels person grown to 12 per cent of its income from conscionable 1 per cent successful early-2020. Since, it continues to witnesser higher maturation successful e-commerce and the transmission is little penetrated erstwhile it comes to footwear category, Joseph expects the stock of online channels successful its gross to turn further.

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