Metro Brands Ltd IPO subscribed 52% on second day of subscription

The initial public offering (IPO) of footwear retailer Metro Brands Ltd was subscribed 52 per cent on the second day of subscription on Monday.

The IPO of the company, which is backed by ace investor Rakesh Jhunjhunwala, received bids for 99,49,320 shares against 1,91,45,070 shares on offer, according to data available with the NSE.

The category for retail individual investors (RIIs) received an 87 per cent subscription, the portion for non-institutional investors was subscribed 17 per cent and qualified institutional buyers (QIBs) 16 per cent.

The IPO has a fresh issue of Rs 295 crore and an offer-for-sale of up to 2,14,50,100 equity shares.

The company's IPO comes at a price range of Rs 485-500 per share.

The company on Thursday raised over Rs 410 crore from anchor investors.

At the upper end of the price band, the public issue is expected to fetch Rs 1,367.5 crore.

The proceeds from the fresh issue will be utilised towards expenditure for opening new stores of the company, under the 'Metro', 'Mochi', 'Walkway' and 'Crocs' brands and for general corporate purposes.

Currently, the company has 598 stores in 136 cities spread across the country.

Axis Capital Ltd, Ambit Private Ltd, DAM Capital Advisors Ltd, Equirus Capital Pvt Ltd, ICICI Securities Ltd, and Motilal Oswal Investment Advisors Ltd are the managers to the offer.