Footwear retailer Metro Brands Ltd has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial share sale.
The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 250 crore and an offer-for-sale of 21,900,100 equity shares by selling shareholders, according to the draft red herring prospectus (DRHP). As part of the OFS, selling shareholders will offload up to 13,195,000 equity shares, promoters will put up 8,697,000 equity shares and promoter groups will sell 8,100 equity shares.
“Each of the selling shareholders will be entitled to the proceeds of the offer for sale after deducting its portion of the offer-related expenses and relevant taxes thereon. Our company will not receive any proceeds from the offer for sale and the proceeds received from the offer for sale will not form part of the net proceeds,” the document read.
The company will consider a pre-IPO placement aggregating up to Rs 10 crore. If such placement is completed, the fresh issue size will be reduced.
Proceeds of the fresh issue will be used towards expenditure for opening new stores of the company, under the “Metro”, “Mochi”, “Walkway” and Crocs brands and for general corporate purposes.
The company-backed by ace investor Rakesh Jhunjhunwala, is an Indian footwear retailer targeting the economy, mid and premium segments in the footwear market.
It opened its first store under the Metro brand in Mumbai in 1955, and have since evolved into a one-stop-shop for all footwear needs, by retailing a wide range of branded products for the entire family including men, women, unisex and kids, and for every occasion including casual and formal events.
As of March 2021, the company operated 586 stores across 134 cities spread across 29 states and union territories in India.
Axis Capital, Ambit, DAM Capital Advisors, Equirus Capital, ICICI Securities, and Motilal Oswal Investment Advisors have been appointed as merchant bankers to advise the company on the IPO.
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