21 December 2021, Mumbai:
Experts say the listing may get affected by the current market sentiment, fear of fresh Covid restrictions amid rising Omicron cases, and higher valuations.
Mumbai-based footwear retailer Metro Brands will make its debut on the bourses on December 22, making it the 60th listing in 2021. Experts largely feel the listing will be impacted by the current market sentiment, spooked by fears of fresh Covid restrictions amid rising Omicron cases, as well as higher valuations.
The public issue of the company saw lower-than-expected subscription demand as the offer was subscribed 3.64 times between December 10 and 14. Qualified institutional buyers showed the most interest among investors, as their reserved portion was subscribed 8.49 times.
Non-institutional investors had put in bids for 3.02 times the allotted quota, while the retail portion was subscribed 1.13 times. Metro Brands has mobilised Rs 1,367.5 crore through its public issue of 2.73 crore equity shares at Rs 500 per share.
The offer consisted of a fresh issue of Rs 295 crore, and an offer for sale of Rs 1,072.5 crore by the promoters. "Considering lower-than-expected subscription demand for its initial public offering (IPO), we expect a flat listing in a best-case scenario.
We believe the reason for the low subscription and premium would be investors' concerns over aggressive pricing (on annualized FY22 earnings, the asking price is at a P/E of above 150x) and the volatile market scenario," said Prashanth Tapse, Vice President (Research) at Mehta Equities.
MoneyControl.com (The news article has not been edited by DFU Publications staff)
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