Rakesh Jhunjhunwala Backed Metro Brands IPO Opened for subscription on 10 December 2021 and will be open for bidding until 14 December 2021. Public issue price after the first day of bidding 1,367.51 crore has been subscribed 27%. As per the latest Metro Brands IPO subscription status, the public issue is subscribed 52 per cent in the retail category and 2 per cent in the NII category. According to market experts, the shares of this holding company of Rakesh Jhunjhunwala are trading at a premium. Today 30 in the gray market.
Metro Brand IPO GMP
Metro Brands IPO is GMP today, market observers say 30, which is 10 less than yesterday’s gray market premium (GMP) 40. He added that the fall in gray market premium can be attributed to the slow response of the bidders on the first day of bidding. However, he expects a reverse trend in investor reaction to the IPO from Monday. He added that the market sentiment is positive these days and this public offering is going to play a major role in the subscription position.
What does this GMP mean?
Market observers said the GMP is an indication about the expected listing gains by the gray market. Metro Brands’ IPO Is Today as GMP 30, it simply means that the gray market expects the Metro Brands IPO to be listed around 530 ( 500+ 30), which is equal to the price band of from 485 500 per equity share.
Metro Brands IPO: Subscribe or Not?
giving the tag of ‘subscribe for long term’ to the IPO of Rakesh Jhunjhunwala-backed Metro Brands; The Choice Broking report says, “MBL (Metro Brands Ltd.) is one of the largest footwear retailers with around 3-4 per cent market share in the organized market and has been given a membership rating to the IPO. In FY 2011, The entire footwear retailing was impacted. Restrictions due to the pandemic. Thus, we have benchmarked the IPO valuation for performance during FY 19-20 at the higher price band of 500, MBL is demanding a P/E multiplier of 89.2 (its average earning 5.6 per share in FY19-20), which is a premium to the peer average multiple of 71.7. It has reported strong financial performance with strong cash flow generation. The company has been paying dividend continuously since FY2000. Thus, we assign a “Subscribe for a long time” rating to this issue.
Metro Brands IPO Details
The likely date of allotment of shares is 17th December 2021 and the listing of shares is likely to be on 22nd December 2021.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,