Metro Brands lists at discount

Metro Brands listed at a discount today – as against the IPO price of Rs.500 it got listed at Rs.436 though it has recouped from there and is now trading at Rs.486 levels.

The IPO had evoked a very lukewarm response. It was subscribed just 3.6 times with QIBs portion subscribing 8.5 times and HNIs at 3.02 times. Retail investors portion was at 1.13 times.

This is the second Rakesh Jhunjhunwala IPO which got listed at a discount. The previous one was Star Health.

Our verdict on the IPO - The IPO is fully priced, with nothing left on the table over the short term. Having said that, planned store roll out and company’s healthy margin profile make it a good long-term bet, on rising domestic consumption theme. Only those with a long-term view may apply in the IPO.