Ace investor Rakesh Jhunjhunwala-backed Metro Brands’ shares are all set to make a stock market debut on Wednesday, December 22, 2021. Amid weak market sentiment, the stock is likely to witness a weak start on exchanges, as per an estimate by analysts. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The footwear retailer is the second Rakesh Jhunjhunwala-invested company to be listed on the stock market, earlier. Earlier, Star Health and Allied Insurance company had also made a weak start on the exchanges in December. 

See Zee Business Live TV Streaming Below:

“We may see a discount listing of Metro Brands given that its GMP trades at a discount of 10-15 per cent given that its GMP (grey market price) trades at the same level currently,” Aayush Agrawal, Senior Analyst at Swastika Investmart Ltd expects.  

He added, “Metro Brands Limited has shown growth, profitability, and financial discipline in the past, but the sector is widely underrated. The company has an asset-light business model and derives most of its revenues from third parties.” 

“We are seeing a change in IPO sentiment amid a slight decline in the market, and the last two debutants witnessed profit bookings post-listing, as well we are seeing a decline in the GMP for upcoming IPOs,” according to Agrawal.  

The Rs 1,370-crore IPO was subscribed 3.46 times during the three-day period between December 10 and December 14, 2021, and it had set a price band of Rs 485-500 per share. It received 6,96,12,480 bids against 1,91,45,070 shares on offer for this issue. 

QIBs category that saw maximum bidding as Qualified Institutional Buyers(QIBs) subscribed the issue 8.49 times on the last day, followed by NIIs and RIIs.