Metro Brands
Mainboard₹1,368 Cr issue
-12.80%
Listing gain over issue price
Issue size
₹1,368 Cr
1 lot at cut-off
₹15,000
Lot size
30shares
Open
10 Dec 2021
Close
14 Dec 2021
Allotment
17 Dec 2021
Listing
22 Dec 2021
Listing performance
Issue price
₹500
Listed at
₹436
Listing-day close
₹493.55
Latest price
₹819.30
Close on 23 Oct 2026
Listing gain
-12.80%
Return since issue
+63.86%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 Dec 2021 – 14 Dec 2021
- Listing date
- 22 Dec 2021
- Face value
- ₹5 per share
- Issue price
- ₹500 per share
- Lot size
- 30 shares
- Total issue size
- ₹1,368 Cr
- Market cap at offer price
- ₹13,575 Cr
- Promoter holding
- 83.99% → 74.27% pre-issue → post-issue
- ISIN
- INE317I01021
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Ambit Pvt.Ltd.
- Registered office
- 401, Zillion, 4th Floor, LBS Marg & CST Road Junction, Kurla (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 82,05,030 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 30 shares per lot, in multiples, at ₹500
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 30 | ₹15,000 |
| Retail (max) | 13 | 390 | ₹1,95,000 |
| S-HNI (min) | 14 | 420 | ₹2,10,000 |
| S-HNI (max) | 66 | 1,980 | ₹9,90,000 |
| B-HNI (min) | 67 | 2,010 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
82,05,030
Anchor portion
₹410 Cr
at ₹500 per share
Valuation and performance
Valuation at offer price
₹500 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹13,575 Cr |
About Metro Brands
Metro Brands Limited, originally incorporated as Metro Shoes Private Limited on January 19, 1977, is one of the largest Indian footwear speciality retailers. The company opened its first store under the Metro brand in Mumbai in 1955 and has evolved into a one-stop shop for all footwear needs. As of September 30, 2021, the company operated 598 Stores across 136 cities spread across 30 states and union territories in India. The company primarily follows a company-owned, company-operated (COCO) retail model through Multi Brand Outlets (MBOs) and Exclusive Brand Outlets (EBOs). The company retails a wide range of branded products for the entire family across different price points and occasions. It generates revenue through retail sales of its own brands as well as third-party branded products.
Company Analysis
from RHPMetro Brands Limited is an Indian footwear speciality retailer targeting economy, mid and premium segments across men, women, unisex and kids footwear through a network of company-owned stores under brands including Metro, Mochi, Walkway and Crocs.
Metro Brands Limited, originally incorporated as Metro Shoes Private Limited on January 19, 1977, is one of the largest Indian footwear speciality retailers. The company opened its first store under the Metro brand in Mumbai in 1955 and has evolved into a one-stop shop for all footwear needs. As of September 30, 2021, the company operated 598 Stores across 136 cities spread across 30 states and union territories in India. The company primarily follows a company-owned, company-operated (COCO) retail model through Multi Brand Outlets (MBOs) and Exclusive Brand Outlets (EBOs). The company retails a wide range of branded products for the entire family across different price points and occasions. It generates revenue through retail sales of its own brands as well as third-party branded products.
footwear retailorganised retailspecialty retail
Objects of the Issue
- Expenditure for opening new stores of the Company, under the 'Metro', 'Mochi', 'Walkway' and 'Crocs' brands ₹ 2,253.74 million p.23
- General corporate purposes ₹ 595.60 million p.23
- Opening new stores p.50
- Expenditure for opening new stores of the Company, under the Metro, Mochi, Walkway and Crocs brands ₹2,253.74 million p.105
- General corporate purposes ₹595.60 million p.105
- Establishment of 260 new stores under various formats p.165
Issue Structure
- Total Issue
- ₹ 13,675.05 million
- Fresh Issue
- ₹ 2,950 million (5,900,000 Equity Shares)
- Offer for Sale
- ₹ 10,725.05 million (21,450,100 Equity Shares)
- Price Band
- ₹ 485 to ₹ 500 per Equity Share
- Lot Size
- 30 Equity Shares and in multiples of 30 Equity Shares thereafter
- Face Value
- ₹ 5 per Equity Share
Business Model
The company generates revenue primarily through retail sales of footwear products across its store network. Revenue streams include in-store product sales, online product sales, and omni-channel product sales (online orders fulfilled through stores). The company also generates revenue from sale of third-party branded products at its MBOs.
Business Segments
Retailing of footwear products under the company's own brands targeting economy, mid and premium segments
Operation of exclusive brand outlets for Crocs footwear products based on a non-exclusive retail license agreement
Retailing of third-party branded footwear products at MBOs
Family-focused multi-brand outlets offering footwear in price range from ₹1,000 to ₹10,000
Youth-focused multi-brand outlets offering footwear in price range from ₹1,000 to ₹10,000
Premium exclusive brand outlets offering Crocs footwear in price range from ₹1,500 to ₹6,000
Value format multi-brand outlets offering footwear in price range from ₹350 to ₹3,500
Contemporary Indian fashion footwear and accessories brand offering range of products with latest designs for casual, formal, and embellished footwear for all occasions; caters to mid and premium segments
Footwear and accessories brand targeting youth and entire family, providing footwear for day, work, evening and party needs as well as special occasions including weddings
Value brand that caters to the entire family, offering footwear at value-for-money prices in the mass market segment; everyday fashion brand providing affordable footwear to men, women and kids
Global brand offering innovative casual footwear with focus on moulded products through Exclusive Brand Outlets; provides comfortable, casual, colourful footwear for women, men and children
Retail through company-owned websites and third-party e-commerce marketplaces; Total Online Product Sales amounted to ₹191.08 million in FY2019, ₹306.22 million in FY2020, ₹571.57 million in FY2021, ₹205.69 million in 6M H1 FY2021, ₹525.42 million in 6M H1 FY2022
Sale of footwear, bags and accessories in premium and economy categories
Manufacturing of shoe care and foot care products
Sale of fashion footwear, bags, and accessories through retail stores
Distribution of international brand products on a commission basis and expense recoveries
SWOT Analysis
Strengths
- • Large, established footwear retailer with extensive store network(p.23)
- • Diversified brand portfolio across multiple price segments(p.35)
- • Strong financial recovery and improved profitability(p.32)
- • Growth in online channels with significant CAGR(p.44)
- • Favorable industry tailwinds and market growth potential(p.23)
- • Expansion into tier 2 and tier 3 cities with growth opportunities(p.45)
- • One of India's largest pan-India footwear retailers with third-highest exclusive retail outlets(p.157)
- • Highest average selling price and operating margins among peers(p.155)
- • Efficient asset-light business model with third-party manufacturing(p.156)
- • Wide brand portfolio spanning multiple price segments(p.156)
- • Strong vendor relationships and Theory-of-Constraints supply chain methodology(p.156)
- • Growing loyal customer base with multiple loyalty programs(p.156)
- • Strong customer loyalty with high repeat purchase rates(p.161)
- • Long-standing vendor relationships and efficient supply chain management(p.161)
- • Asset-light business model without own manufacturing(p.161)
- • Highest realization per unit among key Indian footwear retailers(p.164)
- • Consistent dividend payouts demonstrating financial strength(p.165)
- • Proven experience as a platform for third-party brands, particularly Crocs(p.163)
- • Large pan-India retail presence across cities and demographics(p.167)
- • Strong experienced management team with decades of industry experience(p.163)
- • One of the largest Indian footwear specialty retailers with third highest exclusive retail outlets(p.284)
- • Highest realization per unit and net profit margin among major competitors(p.284)
- • Strong multi-brand portfolio with diverse product range across segments(p.285)
- • Established pan-India presence with 598 stores across 136 cities(p.284)
- • Significant customer loyalty program base with over 5 million members(p.285)
- • Strong balance sheet with minimal debt and low capital intensity(p.286)
- • Asset light business model with third-party manufacturing(p.285)
- • Strong operational cash generation despite COVID-19 impact(p.316)
- • Minimal leverage and strong balance sheet(p.317)
- • Diversified store portfolio across multiple locations(p.312)
- • Ability to negotiate favorable lease terms with landlords(p.311)
- • Dematerialized share trading infrastructure(p.372)
- • Streamlined listing and trading procedures(p.365)
- • Established investor protection mechanisms(p.365)
Weaknesses
- • Dependence on third-party manufacturers with concentration risk(p.37)
- • All warehouses concentrated in single location(p.40)
- • High employee attrition and manpower-intensive operations(p.43)
- • All store and warehouse premises are leased(p.21)
- • Inability to meet CSR expenditure obligations(p.38)
- • Related party transactions at potentially non-arm's length terms(p.38)
- • Heavy dependence on few key vendors(p.46)
- • Lack of long-term vendor supply agreements(p.46)
- • Vendors may terminate relationships at short notice(p.46)
- • Reliance on third-party transportation with no in-house capacity(p.47)
- • Limited pool of skilled personnel and dependence on key management(p.47)
- • Past violations of Companies Act and untraceable corporate records(p.46)
- • Short-term borrowings with restrictive covenants(p.48)
- • Vulnerability to product shrinkage and inventory losses(p.48)
- • Inadequate insurance coverage for potential losses(p.49)
- • Contingent liabilities not provided in financial statements(p.51)
- • Significant revenue decline during COVID-19 pandemic(p.157)
- • Deteriorated profitability metrics in Fiscal 2021(p.157)
- • Negative EBITDA and ROE in first half of Fiscal 2021(p.157)
- • Significant inventory turnover deterioration(p.157)
- • Significant dependence on third-party brands for revenue(p.163)
- • Operational dependence on Crocs brand licensing agreement(p.172)
- • Complete reliance on leased premises with no owned properties(p.34)
- • High concentration of vendors in top 50 suppliers(p.173)
- • Declining profitability margins in recent periods(p.162)
- • COVID-19 impact on store operations and inventory verification(p.224)
- • Significant loss in interim period with negative profit(p.219)
- • Dependence on joint venture with losses(p.216)
- • Significant decline in revenue year-over-year(p.216)
- • High dependence on a few institutional customers for significant revenue(p.273)
- • Significant lease obligations creating fixed cost burden(p.267)
- • Large inventory holdings with inventory turnover ratio declining(p.277)
- • Profitability severely impacted by COVID-19 with net profit margin declining from 12.49% to 8.08%(p.277)
- • Severe revenue decline due to COVID-19 impact(p.310)
- • Significant profit erosion in Fiscal 2021(p.315)
- • Substantial lease liabilities creating fixed obligations(p.318)
- • Multiple labor law compliance violations and notices(p.330)
- • Outstanding litigation with former agents for misappropriation(p.328)
- • Complex regulatory compliance requirements(p.370)
- • Dependence on intermediary infrastructure(p.373)
Opportunities
- • Significant untapped market opportunity in organized retail footwear sector(p.45)
- • Planned expansion of store network using IPO proceeds(p.24)
- • Growth in e-commerce and alternate distribution channels(p.44)
- • Rising consumer footwear spending with industry CAGR of 21%(p.23)
- • Expansion of brand portfolio including new global brand partnerships(p.40)
- • Expansion of retail operations and store network(p.50)
- • Growth in organized footwear retail market(p.54)
- • High growth potential in organized footwear retail segment(p.155)
- • Expansion into tier-II and tier-III cities(p.129)
- • Growing e-commerce penetration in footwear(p.140)
- • Rising disposable incomes driving premium segment demand(p.125)
- • Rising women workforce participation driving women's footwear demand(p.141)
- • Rising brand consciousness and fashion awareness among Indian consumers(p.142)
- • Expansion of organized footwear retail segment at high growth rate(p.165)
- • Significant e-commerce growth potential in India(p.166)
- • Potential for partnership with new third-party footwear and accessory brands(p.165)
- • Growth in accessories and allied businesses segment(p.166)
- • Shift in consumer preferences from utility to fashion footwear(p.165)
- • Expanding online sales channel with omni-channel integration(p.166)
- • Growth opportunity in sustainable and eco-friendly footwear(p.167)
- • Expansion of store network in Tier II and Tier III cities(p.165)
- • Recovery from COVID-19 operational restrictions(p.234)
- • Women's footwear category expected to grow at 9-10% CAGR with increasing corporate participation(p.290)
- • Growth expected in economy, mid and premium segments at higher rates than mass segment(p.284)
- • Online retail expected to grow 10-15% with increasing preference for digital channels(p.290)
- • Organized sector expected to capture market share from unorganized segment(p.287)
- • Urbanization and rising income levels driving demand for branded footwear(p.289)
- • Omni-channel expansion with growing online sales contribution(p.285)
- • Recovery potential as lockdown restrictions ease(p.312)
- • Expansion through store additions and network growth(p.312)
- • Shift toward digital advertising with lower costs(p.311)
- • Expansion of UPI payment mechanism for retail participation(p.371)
- • Broadened investor base through multiple participation categories(p.368)
- • Access to institutional investor capital through QIB portion(p.368)
Threats
- • Severe impact from COVID-19 pandemic with ongoing uncertainty(p.32)
- • Intense competition from organized and unorganized retailers(p.45)
- • Growth of e-commerce creating pricing pressure and competition(p.44)
- • Dependence on renewal of retail license agreement with Crocs(p.39)
- • Volatility in revenues due to fluctuating customer demand and footfalls(p.34)
- • Regulatory changes requiring BIS certification for footwear products(p.41)
- • Risk of loss of third-party brand distribution rights(p.39)
- • Intense competition from larger peers and e-tailing(p.46)
- • Competitors with greater economies of scale and lower pricing(p.46)
- • Seasonal variations and economic downturns affecting consumer spending(p.48)
- • Dependence on discretionary consumer spending amid macroeconomic headwinds(p.54)
- • COVID-19 pandemic impact on retail consumption and economic growth(p.54)
- • Inflation and rising costs not offset by price increases(p.56)
- • Foreign exchange volatility for imported raw materials and products(p.52)
- • Geopolitical tensions affecting trade relations and product sourcing(p.56)
- • Changes in Indian tax laws and GST regulations(p.55)
- • Disruptions to transportation and logistics services(p.47)
- • Global financial instability and market volatility(p.54)
- • Severe pandemic impact on retail footwear industry(p.127)
- • Rising raw material and input costs(p.143)
- • Intense competition from international brands and online players(p.143)
- • Omni-channel retail gaining prominence requiring continued investment(p.141)
- • Fragmented and competitive Indian footwear market(p.143)
- • Regulatory changes affecting e-commerce and retail operations(p.143)
- • Intense competition from organized and unorganized footwear retailers(p.178)
- • High cost and limited availability of quality retail real estate(p.179)
- • Fluctuation in raw material costs and import prices(p.174)
- • Potential supply chain disruptions and vendor concentration risks(p.173)
- • COVID-19 pandemic impact and economic uncertainty(p.234)
- • Multiple ongoing tax disputes and contingent liabilities(p.252)
- • Significant cash flow volatility and net cash outflow(p.216)
- • Ongoing COVID-19 pandemic impact with potential for renewed lockdowns and store closures(p.287)
- • Competition from organized and unorganized footwear retailers as well as direct-to-consumer online platforms(p.290)
- • Dependence on third-party brands and their supply chain challenges(p.289)
- • Rising real estate costs limiting ability to lease desirable store locations(p.288)
- • Consumer spending dependent on general economic conditions and discretionary income(p.289)
- • Exposure to foreign currency fluctuations from imports(p.275)
- • Business subject to seasonal variations in sales volumes(p.322)
- • Exposure to inflation impacting operating costs(p.320)
- • Competitive retail environment with pricing pressures(p.322)
- • Product price risk impacting sales volumes(p.320)
- • Foreign investment restrictions and regulatory approval requirements(p.389)
- • Regulatory changes impacting IPO timelines(p.365)
- • Risk of offer withdrawal or non-completion(p.364)
- • Dependence on minimum subscription thresholds(p.366)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rafique A. Malik | Promoter | 1.02% | 0.99% |
| Farah Malik Bhanji | Promoter | 2.98% | 1.89% |
| Alisha Rafique Malik | Promoter | 4.48% | 3.35% |
| Rafique Malik Family Trust | Promoter | 29.75% | 27.76% |
| Aziza Malik Family Trust | Promoter | 30.19% | 28.16% |
| Rafique A. Malik | Promoter | 1.02% | 0.99% |
| Farah Malik Bhanji (as a trustee for the benefit of Aziza Malik Family Trust) | Promoter | 30.19% | 29.53% |
| Farah Malik Bhanji (as a trustee for the benefit of Rafique Malik Family Trust) | Promoter | 29.75% | 29.11% |
| Alisha Rafique Malik | Promoter | 4.48% | 4.38% |
| Farah Malik Bhanji | Promoter | 2.99% | 2.92% |
| Zarah Rafique Malik | Promoter | 2.99% | — |
| Zia Malik Lalji | Promoter | 2.99% | — |
| Sabina Malik Hadi | Promoter | 2.99% | — |
| Rafique A. Malik | Promoter | — | — |
| Farah Malik Bhanji | Promoter | — | — |
| Alisha R. Malik | Promoter | — | — |
| Rafique A. Malik | Promoter | — | — |
| Farah Malik Bhanji | Promoter | — | — |
| Alisha Rafique Malik | Promoter | — | — |
| Rafique Malik Family Trust | Promoter | — | — |
| Aziza Malik Family Trust | Promoter | — | — |
| Rafique A. Malik | Chairman/Promoter | — | — |
| Farah Malik Bhanji | Managing Director/Promoter | — | — |
| Rafique A. Malik | Promoter | — | — |
| Rafique A. Malik | Promoter | — | — |
| Farah Malik Bhanji | Promoter | — | — |
| Rafique Malik Family Trust | Promoter | — | — |
| Aziza Malik Family Trust | Promoter | — | — |
| Alisha Rafique Malik | Promoter | — | — |
| Aziza R. Malik | Promoter Group | — | — |
| Zarah Rafique Malik | Promoter Group | — | — |
| Zia Malik Lalji | Promoter Group | — | — |
| Sabina Malik Hadi | Promoter Group | — | — |
| Rukshana Javeri | Promoter Group | — | — |
| Zarah Malik Family Trust | Promoter Group | — | — |
| Farah Malik Family Trust | Promoter Group | — | — |
| Zia Malik Family Trust | Promoter Group | — | — |
| Sabina Malik Family Trust | Promoter Group | — | — |
Leadership
Rafique A. Malik · Chairman
Farah Malik Bhanji · Managing Director
Kaushal Khodidas Parekh · Chief Financial Officer
Tarannum Yasinhusein Bhanpurwala · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Metro Brands IPO FAQs
What is the lot size of Metro Brands IPO?
The minimum lot size of Metro Brands IPO is 30 shares. One lot costs ₹15,000 at the cut-off price.
When does Metro Brands IPO open and close?
Metro Brands IPO opened for subscription on 10 Dec 2021 and closed on 14 Dec 2021.
What is the listing date of Metro Brands IPO?
Metro Brands IPO listed on 22 Dec 2021.