Metro Brands, a leading footwear retail company based in Mumbai, saw a significant transaction in the block deal window on Friday, September 6. The deal involved the exchange of 59.5 lakh shares, equivalent to 2.2% of the company's equity. A total of about ₹750 crore was exchanged for the shares, which were traded at an average price of ₹1,260 per.
Following the deal, Metro Brands' stock saw a minor decline, trading 1.28% lower at ₹1,257.00 per share on the Bombay Stock Exchange (BSE). This move caught the attention of investors looking to buy shares online, as Metro Brands has been a notable player in the footwear market, backed by seasoned investor Rakesh Jhunjhunwala.
Metro Brands' journey on the stock market
Metro Brands had a challenging start on the stock market after its Initial Public Offering (IPO) in 2021. The stock debuted at a 13% discount from its IPO price of ₹500 per share, opening at ₹436 on the BSE. Despite this week's debut, Metro Brands has managed to gain traction over time.
The company's history dates back to 1955, when it launched its first store under the 'Metro' brand in Mumbai. Since then, it has grown into a comprehensive footwear retailer catering to various segments, including economy, mid-range, and premium customers.
Financial performance and market strategy
Metro Brands' recent financial performance has been modest. For the first quarter of the current financial year (Q1 FY25), the company reported a net profit of ₹92.27 crore, a 1% decline compared to ₹93.50 crore in the same quarter last year. Revenue also fell slightly, with a 1.1% year-on-year decrease. This slight downturn in financials may present a temporary challenge, but for those looking to buy shares online, the long-term growth plans of Metro Brands could offset this short-term dip.
In August, Metro Brands revealed its growth strategy during an interview with CNBC-TV18. The company identified 50 new locations where it sees potential for expansion. As part of its aggressive growth strategy, the retailer plans to open 200 new stores over the next two years.
Market outlook and investor interest
Despite recent financial setbacks, Metro Brands remains a popular choice for investors, especially those who prefer to buy shares online. The company's long-standing presence in the Indian footwear market, coupled with its expansion strategy, positions it well for future growth.
Moreover, its diverse product offering, catering to the economy, mid, and premium segments, provides a buffer against market fluctuations. For those looking to diversify their portfolios by investing in retail stocks, Metro Brands offers a unique opportunity, especially with its plans for market expansion and store openings.
Key takeaways
For android only