Metro Brands Limited established their first Metro store in Mumbai in 1955, and since then, they’re grown into a one-stop shop for all footwear requirements, selling a comprehensive selection of branded items for men, women, unisex, and kids, as well as for any occasion including casual and formal occasions.
Their Company operates 586 Stores (as described below) in 134 cities across 29 Indian states and union territories as of March 31, 2021. Between Fiscal 2020 and 2025, they plan to focus on the economy, mid, and premium sections of the footwear market. These Sections are anticipated to develop at a faster rate than the overall footwear industry. There are more organised participants in these segments.
Metro Brands Limited had the third-highest number of exclusive retail locations in India in Fiscal 2021. They had an EBITDA Margin of 27.72 percent, 27.51 percent, and 21.36 percent in Fiscal 2019, 2020, and 2021, respectively. In Fiscal 2019, 2020, and 2021, they had Realization per Unit of 1,321.29, 1,345.80, and 1,327.96, respectively, based on revenue from Total Product Sales divided by volume of Total Product Sales. From Fiscal 2019 to Fiscal 2021, they had the best Realization per Unit of the two top players in India. They have the best operating margins among India’s major companies in Fiscal 2020. In addition, they had the best net profit margin of 8.1 percent among footwear companies in 2021.
Competitive Strengths
- One of India’s largest footwear retailers
- Wide range of brands and products
- Efficient operating model and asset-light business
- Presence across multiple formats and channels
- First choice for other national and international third-party brands
- Strong promoter background and an experienced management team
- Strong track record of growth and profitability
Company Promoters
- Rafique A. Malik,
- Farah Malik Bhanji,
- Alisha Rafique Malik,
- Rafique Malik Family Trust
- Aziza Malik Family Trust
Company Financials
| Particulars | For the year/period ended ( in Cr.) | |||
|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 1,659.34 | 1,617.42 | 1,321.51 | |
| Total Revenue | 878.54 | 1,311.07 | 1,236.90 | |
| Profit After Tax | 64.62 | 160.58 | 152.73 |
Objects Of The Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Metro Brands IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 5 | Bata India Limited | N/A |
| 2 | 1 | Relaxo Footwears Limited | 99.07 |
Metro Brands IPO Risk
- The ongoing COVID-19 epidemic has had a substantial impact on their business, especially now and in the future.
- They may not be effective in maintaining and increasing brand visibility.
- All of their stores and warehouses are leased spaces.
- For the production of all of the items they sell, they rely on third parties.
- The selling of third-party brands accounts for a major amount of their revenue.
- Their company, directors, and promoters are the subject of ongoing legal actions. Any negative conclusion in these proceedings might have a negative impact on their company.
- Breakdowns in technology might interrupt their operations and have a negative impact on its company operations and financial condition.
Other Threats
- The rise of internet merchants may put pressure on prices, increase competition, and have a negative impact on their business.
- They may be unable to expand their business in semi-urban regions, which might be negative to their company.
- They work in a competitive market, and any rise in competition might hurt their bottom line.
- No impartial body has assessed their financial needs or the anticipated distribution of Net Proceeds.
- With the majority of their vendors, they do not have formal agreements or set conditions of trade.
- Their transportation requirements are met by other parties.
- Seasonality is a factor in their business. Lower revenues over the holiday season of any fiscal year may have a negative impact on their company.
Metro Brands IPO – Details
| IPO Opening Date | 10 December 2021 |
| IPO Closing Date | 14 December 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹ 1367.51 Crore |
| Face Value | ₹5 per equity share |
| IPO Price | ₹ 485 To ₹ 500 Per Equity Share |
| Market Lot | 30 Shares ( 1 Lot) |
| Min Order | 30 Shares |
| Listing At | BSE, NSE |
| Register | LinkIntime India Private Limited |
Metro Brands IPO – Date Schedule
| IPO Open Date | 10 December 2021 |
| IPO Close Date | 14 December 2021 |
| Basis of Allotment Date | 17 December 2021 |
| Initiation of Refunds | 20 December 2021 |
| Credit of Shares to Demat Account | 21 December 2021 |
| IPO Listing Date | 22 December 2021 |
Metro Brands IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 30 | 15,000 |
| Maximum | 13 | 390 | 1,95,000 |
Promoters Holding
| Pre Issue Share Holding | 83.99% |
| Post Issue Share Holding |
Metro Brands IPO Prospectus
Company Contact Information
| Metro Brands Limited 401, Zillion, 4th Floor, LBS Marg & CST Road Junction Kurla (West), Mumbai- 400 070, Maharashtra, India Tel: + (91) 22 2654 7700 E-mail: investor.relations@metrobrands.com Website: www.metrobrands.com |
Metro Brands IPO Registrar
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West, Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: metrobrands.ipo@linkintime.co.in Website: www.linkintime.co.in |
Metro Brands IPO Lead Manager(s)
| 1. Axis Capital Limited 2. Ambit Private Limited 3. ICICI Securities Limited 4. DAM Capital Advisors Limited 5. Equirus Capital Private Limited 6. Motilal Oswal Investment Advisors Limited |
Metro Brands IPO FAQs
| When Metro Brands IPO will open? The Metro Brands IPO dates are 10 December 2021 To 14 December 2021. |
| What is the lot size of Metro Brands IPO? Metro Brands IPO lot size is 30 Shares Shares and total amount is ₹ 15,000. |
| How to apply for Metro Brands IPO? You can apply in Metro Brands IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is Metro Brands IPO listing date? The Metro Brands IPO listing date is announced. The date of Metro Brands IPO listing is 22 December 2021. |
