About the Company:
Metro Brands Ltd is one of the largest Indian footwear speciality retailers, and are among the aspirational Indian brands in the footwear category.
Company offers one-stop shop solution 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.
Company also sells accessories such as belts, bags, socks, masks and wallets.
Company retails footwear under own brands of Metro, Mochi, Walkway, Da Vinchi and J. Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop,
As of March 31, 2021, Company operated 586 Stores across 134 cities spread across 29 states and union territories in India.
Company opened 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.
Company’s Chairman and Promoter, Mr. Rafique A. Malik, has over 50 years of experience in the footwear retail business and continues to provide strategic insights and overall direction to the company based on his long experience of understanding customer preferences and demands in the industry.
Mr. Rakesh Jhunjhunwala is a investor in the company since 2007.
Company’s total Store count has grown from 504 in 116 cities as of March 31, 2019 to 586 stores across 134 cities as of March 31, 2021.
Company has a pan-India presence through Store network in prominent high streets, malls and airports, spread across 29 states and union territories in India as of March 31, 2021 and have opened 113 new MBOs (including seven through franchises) and 98 new EBOs in the last three Fiscals.
Brands sold by the Company:
Company retails footwear under own brands of Metro, Mochi, Walkway, Da Vinchi and J. Fontini, as well as certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop, which complement our in-house brands.
Company also retails footcare and shoe-care products at company’s stores through joint venture, M. V. Shoe Care Private Limited, making company a ‘one-stop-shop’ for all footwear and related accessories.
Total numbers of Stores for company’s key brands:
Company’s E-commerce operations:
Company operates websites and have an extensive online presence. These are brand websites directly managed by the company. They include www.metroshoes.net, www.mochishoes.com, and www.walkwayshoes.com
In Fiscal 2020 and 2021, company’s Total Online Product Sales amounted to Rs.30.6 crores,and Rs.57.1 crores, respectively, which represented 2.53% and 7.25%, of company’s revenue from operations in such periods, respectively, on a standalone basis.
Company’s key performance indicators:
- Mr. Rafique A. Malik (Designation: Chairman)
- Ms. Farah Malik Bhanji (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs. 1072 cr)
- Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 295 cr)
- Expenditure for opening new stores of the Company, under the “Metro”, “Mochi”, “Walkway” and “Crocs” brands.
- General corporate purposes.
Positives for the Company:
One of India’s largest pan India footwear retailers.
- Company is one of the largest Indian footwear speciality retailers, and are among the aspirational Indian brands in the footwear category.
- Company also had the third highest number of exclusive retail outlets in India in Fiscal 2021.
- As of March 31, 2021, company had a pan-India presence through 586 Stores (across Metro, Mochi and Walkway branded MBOs, Crocs™ branded EBOs, and Walkway franchisees and SIS) located in 134 cities spread across 29 states and union territories in India, operated by the Company.
Asset light business with an efficient operating model leading to sustained profitable growth.
- Company is among the few footwear retailers in India to source all our products through outsourcing arrangements without our own manufacturing facility, resulting in an asset light model.
- Company’s asset light model is based on third-party manufacturing by long-standing vendor relationships, and supported by active brand portfolio management, optimum store size and layout, and long-term lease arrangements.
- Owing to scale of operations and strong supplier network, company is able to leverage better margins with vendors and enter into arrangements with third-party brands on favourable terms .
- For instance, under most of the arrangements for third-party brands, company is required to pay for products only once these products are sold.
Platform of choice for third party brands looking to expand in India.
- Company has grown to be a platform of choice for other national and international third-party brands on the back of company’s footwear focused retailing experience since 1955.
- Company has a good track record of successfully incubating and scaling up various retail brands, and extensive pan-India operations through which we have gained strong insight on evolving customer preferences across demographics.
Company’s successful partnership with Crocs™.
- Company had entered into a retail license arrangement with Crocs™ in 2015, and have since expanded Crocs™ branded EBOs throughout the country.
- Company opened 98 Crocs EBOs in the last three Fiscals and had 149 Crocs™ EBOs in our network as of March 31, 2021. Revenue of our Crocs™ EBOs has consistently increased over the years.
Strong track record of growth and profitability.
- From Fiscal 2019 to Fiscal 2021, company recorded the highest Realization per Unit, and in Fiscal 2020 company recorded the highest operating margins, and net margins among the key players in India
- Company recorded a Realization per Unit i.e. revenue from Total Product Sales divided by volume of Total Product Sales, of Rs.1345.80 and Rs.1327.96, in Fiscal 2020, and 2021, respectively.
Plans to expand the store network in existing and new Indian cities.
- For the Walkway brand of footwear, company proposes to focus on franchise arrangements to increase the network of Walkway stores in India. Company proposes to utilize proceeds from the Fresh Issue to establish 219 new stores, under various formats.
Financials of the Company:
|(in Crores)||FY 19||FY 20||FY 21||30th Sept 21|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Metro Brands Ltd||5||2.43||TBA||8.24%||31.17|
|Bata India Ltd||5||(6.95)||N.A||(-5.08%)||136.79|
|Relaxo Footwears Ltd||1||11.74||99.07||18.54%||63.29|
|Issue Opens on||10th December 2021|
|Issue Closes on:.||14th December 2021|
|Issue Price||Rs.485 – 500|
|Retail Category Allocation||35%|
|Minimum Lot||30 Shares|
|Issue Size||Rs.1365 cr ($182 million)|
|Market Cap||Rs.13575 cr ($1.8 billion)|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||59,00,000 (Rs. 295 cr)|
|Equity Shares Offered (OFS)||2,14,50,100 (Rs.1072 cr)|
|Equity Shares Offered (Fresh + OFS)||2,73,50,100 (Rs.1365 cr)|
|Equity Shares Prior to the Issue||26,56,07,426|
|Equity Shares after the Issue||27,15,07,426|
Also Read : List of Upcoming IPO’s in India.
|Finalization of Basis of Allotment||On or Before 17th December 2021|
|Initiation of Refunds||On or Before 20th December 2021|
|Credit of Equity Shares:||On or Before 21st December 2021|
|Listing Date:||On or Before 22nd December 2021|
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
Note: Retail Subscription on the basis of Applications: 0.95x
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
Link InTime Website: https://linkintime.co.in/PublicIssue/
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|Metro Brands Limited
401, Zillion, 4th Floor
LBS Marg & CST Road Junction
Kurla (West), Mumbai- 400 070
Tel: + (91) 22 2654 7700
|IPO Registrar Info:|
|Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai 400 083, Maharashtra, India
Telephone: +91 22 4918 6200