India’s Metro Brands raises $54.15m from anchor investors
By Vinu Lal
10:43, 10 December 2021
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.
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.