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Jhunjhunwala-backed Metro Brands lists with 12% discount, pares losses intra-day

Jhunjhunwala-backed Metro Brands lists with 12% discount, pares losses intra-day

New Delhi, Dec 22 (SocialNews.XYZ) Ace investor Rakesh Jhunjhunwala-backed Metro Brands' shares were listed on the bourses at a discount of 12 per cent over its issue price on Wednesday.

Founded in 1955, the Mumbai-based firm deals in retail footwear. As of March 31, 2021, it operated 598 stores in 136 cities spread across the country.

 

However, during the day's trade, it pared the entire intra-day losses and settled marginally higher at Rs 504, against its offer price of Rs 500, NSE data showed.

The company's public offerings were subscribed 3.54 times higher than the issue.

"With an asset-light model, Metro Brands derives most of its revenues from third parties. It has demonstrated a decent growth, profitability and financials in the past," said Santosh Meena, Head of Research at Swastika Investmart.

"Long-term investors are advised to hold the stock, while short-term investors can keep their stop loss at Rs 380. If the price holds above Rs 380 on a closing basis, fresh positions can be taken and can be bought on dips," Meena added.

The footwear retailer's current market capitalisation is worth Rs 13,629 crore, data showed.

Source: IANS

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Jhunjhunwala-backed Metro Brands lists with 12% discount, pares losses intra-day

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