Metro Brands, MapmyIndia stocks shrug off anchor selling to set new highs

Shares of footwear retailer Metro Brands and digital mapping services provider CE Info Systems (MapmyIndia) rose sharply on Monday even as the 30-day anchor lock-in period following the initial public offering (IPO) ended.

Metro Brands jumped 19.5 per cent to end at a new record high of Rs 607. Meanwhile, MapmyIndia rose 10.7 per cent in intra-day trade to hit a new high of Rs 1,918. The stock settled at Rs 1,852, up nearly 7 per cent over its previous day’s close.

Analysts said the allotment made to anchor investors by these two companies was relatively low which helped prevent any intensive selling pressure.

Metro Brands had allotted 8.2 million shares, or 3 per cent equity stake to anchor investors, while MapmyIndia had allotted 3 million shares, or 5.7 per cent. They said one can expect some selling pressure in counters such as HP Adhesives, Supriya Lifescience and CMS Info Systems. These companies have allotted between 10.3 per cent and 14.3 per cent stake to anchor investors, shows an analysis done by Edelweiss Alternative Research. Anchor lock-in for five companies is set to end between January 19 and January 28.

Analysts said the 20 per cent surge in Metro Brands was underpinned by strong financial performance during the December 2020 quarter.

The Mumbai-based retailer reported 53.3 per cent year-on-year jump in consolidated profit to Rs 66 crore. Its revenues and operating profit rose 59 per cent and 70 per cent to Rs 304 crore and Rs 99 crore respectively.

Metro Brands said the December 2020 quarter was the first quarter since March 2020 without any major Covid-related restrictions. Robust recovery in customer sentiment and strong online sales boosted performance. It added 39 stores during the quarter.