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India’s Metro Brands raises $54.15m from anchor investors

By Vinu Lal

10:43, 10 December 2021

Woman in black leather pants and red high heel shoes
Metro has allotted 8.2 million shares to the anchor investors – Photo: Shutterstock

Indian footwear retailer Metro Brands has raised INR4.1bn ($54.15m) from 28 anchor investors, ahead of its initial stake sale to the public, the company said in an exchange update on Thursday. 

The company has allotted a total of 8.2 million shares to the anchor investors at the upper end of the initial public offering (IPO) price band of INR500, it said.

The top investors included Goldman Sachs, Abu Dhabi Investment Authority, SBI Life Insurance Co, Kotak Emerging Equity Scheme, University Of Notre Dame Du Lac, Gmo Emerging Domestic Opportunities Fund and Pinebridge India Equity Fund among others.

A total of 2.74 million shares worth INR1.37bn were allotted to eight mutual funds through a total of 11 schemes, the data showed.

The mutual funds included ICICI Prudential ESG Fund, HDFC Trustee Company, Kotak Emerging Equity Scheme, Aditya Birla Sun Life Trustee, Tata India Consumer Fund and IDFC Hybrid Equity Fund among others. 

IPO price band

Earlier on 7 December, Metro Brands had fixed an IPO price band of INR485-INR500 a share, the company said in a press statement. The firm was looking to raise INR13.66bn ($181.3m) through the issue at the upper end of the price range. 


146.85 Price
-0.960% 1D Chg, %
Long position overnight fee 0.0113%
Short position overnight fee -0.0195%
Overnight fee time 22:00 (UTC)
Spread 0.090


0.67 Price
+1.060% 1D Chg, %
Long position overnight fee -0.0073%
Short position overnight fee -0.0009%
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1.27 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 22:00 (UTC)
Spread 0.00170


1.09 Price
-0.050% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0003%
Overnight fee time 22:00 (UTC)
Spread 0.00070

The offer comprises a fresh issue of shares of up to INR2.95bn and an offer for sale (OFS) of up to 21.45 million shares by the existing investors, according to the Red Herring Prospectus or final papers, filed with the Indian market regulator.

Metro Brands’ IPO, which opened for subscription today, will close on 14 December.

Opening new stores 

Metro Brands, backed by Indian businessman and ace stock market investor Rakesh Jhunjhunwala, intends to use the net proceeds from the fresh issue for opening new stores under its Metro, Mochi, Walkway and Crocs brands and for general business purposes. 

As of 30 September, the company had 598 stores in 136 cities.

Axis Capital, Ambit, DAM Capital Advisors (formerly IDFC Securities), Equirus Capital, ICICI Securities and Motilal Oswal Investment Advisors are the managers to the issue.

Read More: Data Patterns (India) fixes float price range

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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