Metro Brands Ltd IPO Listing at 12% Discount

Metro Brands Ltd had a weak listing on 22nd December and listed at a discount of -12.6%. However, towards the second half of the day, the stock staged a sharp bounce and actually closed tad above the issue price. This was despite a weak opening on listing day. The stock faced pressure on opening but managed to bounce and recoup all losses by end of the day.

With 3.64 times subscription and limited trading in the grey market, Metro Brands Ltd was expected to list flat or at a discount to the issue price. However, actual listing was much lower than expected by the markets. Here is the Metro Brands Ltd listing story on 22-Dec.

The IPO price was fixed at the upper end of the band at Rs.500 which was a tad aggressive considering that the issue was subscribed just 3.64 times overall with strong contribution only from the HNI and the QIB segment.

The price band for the Metro Brands IPO was Rs.485 to Rs.500. On 22nd Dec, the stock of Metro Brands Ltd listed on the NSE at a price of Rs.437, a discount of -12.6% on the issue price of Rs.500. On the BSE also, the stock listed at Rs.436 a discount of -12.8% on the issue price.

On the NSE, Metro Brands Ltd closed on 22-Dec with a sharp bounce at a price level of Rs.502, a first day closing premium of 0.40% on the issue price of Rs.500. However, the closing price was 14.87% above the listing price due to the sharp bounce during the day.

On the BSE, the stock closed at Rs.493.55, a first day closing discount of -1.29% on the issue price, but the stock closed 13.20% above the listing price. On both the exchanges, the stock listed at a steep discount to the issue price, and during the day the stock bounced back sharply to recoup most of the listing losses of the morning.

On Day-1 of listing, Metro Brands Ltd touched a high of Rs.507.90 on the NSE and a low of Rs.426. On Day-1 of listing, the Metro Brands Ltd stock traded a total of 197.17 lakh shares on NSE amounting to value of Rs.937.76 crore.  On 22-Dec, Metro Brands Ltd was fourth highest traded stock on NSE by value and sixteenth highest based on number of shares.

On the BSE, Metro Brands Ltd touched a high of Rs.507.70 and a low of Rs.426.10. On BSE, the stock traded a total of 7.76 lakh shares amounting to value of Rs.36.94 crore. Metro Brands Ltd was the twelfth most active stock on the BSE in terms of trading value.

At the close of Day-1 of listing, Metro Brands Ltd had a market capitalization of Rs.13,400 crore with free-float market cap of Rs.938 crore.

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