Business

Footwear firm Metro plans to raise ₹250 cr.

Footwear retailer Metro Brands Ltd is planning to tap the capital market to raise fresh capital of up to ₹250 crore a large part of which will be utilised for opening 219 new stores under Metro, Mochi, Walkway and Crocs brands.

“We are bullish about footwear retailing in India,” said Rafique A. Malik, chairman. “We have got the format right and have been profit making. Our online sales are also growing rapidly. And, overall, the demand for footwear has reached pre-COVID level.

“We have chalked out our network expansion plan and all the new 219 stores will come up in two-and-half to three years and most of the capital will be utilised for that. We will have more store in tier 2 and tier 3 cities as the demand is increasing from there,” he said.

In FY21, the company recorded a total revenue of ₹878.5 crore and a net profit of ₹64.6 crore. “We follow a three-year plan to identify cities that we target to be in, as well as cities where our other brands can be introduced or new areas in which our presence can be increased. Based on this three-year plan, a detailed yearly plan is prepared,” said Farah Malik Bhanji, MD.

Currently, the promoters and promoter group hold 84.02%. This includes 30.2% held by the Aziza Malik Family Trust and 29.76% held by the Rafique Malik Family Trust. Investor Rakesh Jhunjhunwala holds little more than 14% stake.

Besides raising fresh capital, the company will also have an offer for sale.

As a part of the offer for sale, Aziza Malik Family Trust will sell up to 3,737,000 shares; Rafique Malik Family Trust 3,660,000; Farah Malik Bhanji 2,899,000, Alisha Rafique Malik 2,899,000; Zarah Rafique Malik 2,899,000, Zia Malik Lalji 2,899,000; Sabina Malik Hadi 2,899,000; Rakesh Hridaynarayan Pathak up to 8,100 shares.


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Printable version | Dec 2, 2021 8:25:06 PM | https://www.thehindu.com/business/footwear-firm-metro-plans-to-raise-250-cr/article37097956.ece

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