Metro Brands share: Market experts are of the opinion that Rakesh Jhunjhunwala-backed IPO may list in the range of ₹450 to ₹525, depending upon the market sentiment. Photo: Courtesy Metro Brands website
Shares of Metro Brands are going to knock in the primary markets today. As per the information available on the BSE website, the shares of the Rakesh Jhunjhunwala-backed company will be listed and admitted for dealing in the 'B' Group of Securities List on NSE and BSE. According to stock market experts, despite the Rakesh Jhunjhunwala tag, the listing of shares of Metro Brands may be sluggish. He further said that the shares of the Rakesh Jhunjhunwala-backed company can open at a discount of 5 to 10 percent.
Speaking on the gains in the stock listing of Metro Brands; Manoj Dalmiya, Founder & Director, Proficient Equities Ltd. said, “The public issue price is very high which was reflected in the weak response from investors during the bidding process. The business model of the company is also facing heavy competition and hence we Looking forward to listing this issue in the range of ₹440 to ₹465, i.e. around 10 per cent off.”
Footwear retailer Metro Brands Ltd's initial public offering (IPO) was subscribed 3.64 times on the last day of subscription which closed on December 14. The offer price range was ₹485-500 per share.
Weak Metro Brands Expected Share Listing; Amarjeet Maurya, AVP, Mid Caps, Angel One Limited, said, “On the day of listing, we expect a slightly weaker listing due to the company’s already high valuations and fears of the new covid variant Omicron (increasing the possibility of lockdown) However, we remain positive on the stock for the long term due to the asset light business, strong brand and wide range of products. Every fall in share prices provides a buying opportunity to long-term investors."
Highlighting the valuations going against the stock listing of Metro Brands; Ricky Kriplani, Lead Sponsor, First Water Capital Fund (AIF), said, “Metro brands, such as some of the recent IPOs with a relatively large OFS component and post-Star Health experience, may be investors to buy into Metro Brands. Not scrambling- Listing. If subscription numbers and recent market sentiment are anything to go by, the listing could well be at a discount to the issue price. While the business model has great potential in a consumer driven economy, valuations should be Can be considered fairly prosperous if you normalize the numbers. We cannot be surprised if the stock turns lower in the medium term and underperforms in the broader markets."
Ravi Singhal, vice chairman of GCL Securities, also expects a sluggish listing. He predicts that the stock may get listed in the range of ₹450 to ₹525 depending on the market sentiment. However, "one should book profits immediately as we are also expecting heavy selling after listing." He advised the allottees to book profit on immediate listing even if there is concessional opening for public issue.
Metroid Brands IPO Discount Prediction; Ayush Agarwal, Senior Analyst, Swastik Investmart Ltd., said, “Metro Brands Ltd. has shown growth, profitability and financial discipline in the past, but the sector has been widely underrepresented. The company has an asset-light business model and Most of its revenue comes from third parties. We are seeing a change in the sentiment of the IPO amid a slight decline in the market, and the last two debutants saw profit-booking post the listing, also we are seeing a fall in the GMP for the upcoming IPO. We can see a discount list of Metro Brands."
According to market observers, Metro Brands IPO GMP today is minus ₹60, which means that the shares of Metro Brands are trading at a discount of ₹60 in the gray market today. Hence, market observers believe that the share listing of Metro Brands can be expected around ₹440 (₹500 - ₹60).