Did you know Metro shoes’ name was inspired from Mumbai’s iconic Metro Cinema? Since India’s independence, the homegrown footwear retailer has come a long way and is now set to hit the exchanges soon. Barring the pandemic-related hit FY21, the company has had a healthy financial track record. It has one of the highest profit margins among its peers. It operates nearly 580 stores pan-India. With plans to open new stores, it is positioning itself to ride the growth wave in the organized footwear market that is expected to grow at 20% CAGR over FY22-FY25. It has been backed by marquee investors like Rakesh Jhunjhunwala since 2007.
All about the IPO
Malik Tejani, the grandfather of the company’s current Managing Director Farah Malik Bhanji, took out a loan to buy a store in Colaba, Mumbai and then re-named it Metro Brands.
From a single store in Mumbai, the family-run business has today expanded its footprint with 586 stores across 134 cities in the country. The management plans to further expand its store network by opening 219 stores using the proceeds of the issue.
Revenue: -19%; Net profit: -35% (FY19-21 CAGR)