Metro Brand IPO: What GMP Indicates About Rakesh Jhunjhunwala Backed Issue

Metro Brand IPO GMP

Metro Brands IPO is GMP today, market observers say 40, which is 20 less than its Friday gray market premium 60. He said that the Rakesh Jhunjhunwala-backed public issue made its debut in the gray market in three digits but soon came down and reached double digits. However, it has declined further in the last two days. from 80 40 levels. He expected this GMP to recover from Monday when the market reopens next week.

what does this gmp mean

Market observers said the GMP is a view given by the gray market regarding listing benefits from the IPO. Metro Brands’ IPO Is Today as GMP 40, it simply means gray market expect to list around this IPO 540 ( 500+ 40), which is 8 percent more than its price band from 485 500 per equity share.

Metro Brands IPO: Subscribe or Not?

Giving its review and ‘subscribe’ tag to the IPO of the Rakesh Jhunjhunwala-backed company, the Choice Broking report says, “MBL is one of the largest footwear retailers, having around 3-4 per cent market share in the organized market and it Subscribe rating is given. IPOs. In FY21, the entire footwear retailing was affected by the pandemic-led restrictions. Thus, we have benchmarked the IPO valuations for performance during FY19-20. At the higher price band of 500, MBL is seeking a P/E multiplier of 89.2 (its average earning 5.6 per share in FY19-20), which is a premium to the peer average multiple of 71.7. It has reported strong financial performance with strong cash flow generation. The company has been paying dividend continuously since FY2000. Thus, we assign a “Subscribe for a long time” rating to this issue.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.