Metro Brands and RateGain Travel to come out with their IPOs

In the following week, companies, in particular Rakesh Jhunjhunwala-supported Metro Brands, RateGain Travel Technologies will come out with their initial public offerings.

Here are the names of the companies which are offering the IPOs for subscriptions:

Metro Brands:

This IPO is much hyped up because of the backing from Billionaire Investor Rakesh Jhunjhunwala whose wife is the third the third largest shareholder in the company, with 14.73 per cent stake. Rest 83.99 shares are within the hands of Promoter and Promoter group.

It will open on December 10. It will close on December 14. The company is yet to announce the price band and lot size of the shares.

Metro brands is one of the largest footwear retailer company which will use the funds to open new stores and for general corporate purposes. As of now, the organization has 586 stores in 134 urban areas spread across India. 211 stores of total stores were opened over the recent three years. The organization is an Indian footwear retailer focusing on the economy, mid and premium portions in the footwear market.

The offering consists of a fresh issue of ₹ 295 crore, and an offer for sale of 2,14,50,100 equity shares by promoters.

Recently, Rakesh Jhunjhunwala supported Star Health and Allied Insurance didn’t get the best reaction from financial investors as it was bought in just 79% of the aggregate. It would be interesting to see how subscription for this IPO turns out.

RateGain Travel Technologies:

The IPO will open for subscription on 7^th of December and will close after two days on 9^th of December.

With a fixed price band of Rs 405-425 per share and face value of Rs 1, the largest “software as a service” company in the hospitality and travel industry is aiming to gather Rs 1,335.7 crore at the upper price band.

The promoters Bhanu Chopra, Megha Chopra, and Usha Chopra will liquidate 54.91 lakh equity shares while investor Wagner will offload 1.71 crore equity shares through OFS.

The objective of the IPO is to use the garnered amount for repaying debts availed by its subsidiary RateGain UK, payment of deferred consideration for acquisition of  DHISCO and strategic investments, acquisitions as well as inorganic growth.

As the company’s business is dependent on the hospitality and travel industry, any further spike in pandemic will ruin the health of the company. Thus, subscription should be taken upon some thinking.