MUMBAI: Big bull Rakesh Jhunjhunwala-backed Metro Brands listed at an almost 13% discount to its issue price of Rs 500 on Wednesday.
One of India’s largest footwear retailers, the company aimed to raise Rs 1,367.5 crore from the Street to open new stores and for general corporate purposes. Of the total proceeds, Rs 295 crore is a fresh issue while Rs 1,072.51 crore is an offer for sale from the promoters and other shareholders, which means it won’t flow into the company’s coffers.
The stock listed on the NSE at Rs 437 apiece and Rs 436 on BSE, before closing at Rs 502 on the former. The tepid debut was ascribed to the company trading at a high valuation of 86 times 12 month trailing PE and possibility of lockdown due to the Omicron by Amarjeet Maurya, AVP, Angel One. However, Maurya is positive on the stock for the long term on the back of the company’s asset light business, strong brands and wide range of footwear.
Some of its well-known brands include Mochi, Walkway, Da Vinchi, and J. Fontini, as well as third-party brands Crocs, Skechers, Clarks, Florsheim, and Fitflop. Meanwhile, Bharat FIH, a Foxconn Technology Group company, filed papers with Sebi to raise Rs 5,000 crore.
Markets extend gains for 2nd session
Mumbai: Benchmark indices rose over a percent each in a session marked by low volumes. The broader Nifty rose 1.1% to close at 16955.45 and the Sensex closed up 1.09% at 56930.56. The gains on the Nifty were led by metal, auto, pharma and financial companies with 5 stocks rising for one that declined. “A consolidatory phase going into results season is expected as volumes would remain muted for the rest of December, since there are expected to be few triggers in terms of news flow,” said S Hariharan, head- sales trading, Emily Global. IT sector continues to attract greater interest while bottom-fishing is seen in the auto sector.