Rakesh Jhunjhunwala-Backed Metro Manufacturers Seeks SEBI Nod For IPO


The shoe retailer Metro Brands Ltd., supported by Rakesh Jhunjhunwala. has applied for approval from the market regulator for its IPO.

The company intends to raise Rs 250 crore through a new issue of equity shares and also make an offer to sell 2.19 crore of shares owned by promoters, promoter groups and other investors, according to the draft Red Hering prospectus issued at the. has been filed with the Securities and Exchange Commission of India.

The company, which operates brands like Metro, Mochi, Walkway, and Crocs, will consider a pre-IPO placement that adds up to Rs 10 crore. When such a placement is completed, the size of the new issue will be reduced.

Rafique A. Malik, Farah Malik Bhanji, Alisha Rafique Malik, Rafique Malik Family Trust and Aziza Malik Family Trust are the sponsors of the company. Metro Shopping Plaza Pvt. and Metro Shopping Arcade Pvt. are among other things part of the promoter group.

The billion dollar investor Jhunjhunwala held a 14.75% stake in the company as of March 31.

Metro Brands plans to use Rs.188.1 billion to open 219 new stores, while the remaining proceeds from the IPO will be used for general corporate purposes.

As of March 31, Metro Brands had 586 stores in 134 cities in India and is represented in 29 states and three union territories.

Financial data FY21

Axis Capital Ltd., Ambit Pvt., DAM Capital Advisors Ltd., Equirus Capital Pvt., ICICI Securities Ltd. and Motilal Oswal Investment Advisors Ltd. are the accounting lead managers of the IPO.