InvestorQ : How was the Metro Brands listing on 22 December? Did the Jhunjhunwala effect make a difference?
Debbie Mascarenhas made post

How was the Metro Brands listing on 22 December? Did the Jhunjhunwala effect make a difference?

Arti Chavan answered.
5 months ago

I am not sure of the Rakesh Jhunjhunwala effect but the stock certainly bounced back sharply after a weak listing. Let me focus on the listing first. On 22-December, the IPO of Metro Brands listed at a discount of -12.6% at Rs.437 against the IPO issue price of Rs.500. . However, in the second half, the stock of Metro Brands staged a smart recovery and actually closed marginally above the issue price. The subscription of the IPO was 3.64 times.

Metro Brands listed on the NSE at Rs.437 and on the BSE at Rs.436, a discount of -12.6% and -12.8% on the issue price, respectively. However, on the NSE, the stock closed the day at an impressive Rs.502, a first day closing premium of 0.40% over the issue price of Rs.500. In fact, the closing price of Metro Brands on the NSE on listing day was a good 14.87% above the listing price. This is perhaps due to the Jhunjhunwala effect on the stock.

On the day of listing, Metro Brands touched a high of Rs.507.90 on the NSE and a low of Rs.426. On the BSE, Metro Brands scaled a high of Rs.507.70 and a low of Rs.426.10. On both the exchanges, the opening was near the low of the day and the closing was near the high of the day, which is normally a good signal. Metro Brands runs the biggest retail network of footwear stores in India.

The volumes were also quite robust on the first day of trading. Metro Brands stock traded a total of 197.17 lakh shares on the NSE with trading value of Rs.937.76 crore. During the day, Metro Brands was the 4th highest traded stock on NSE by value and 16th highest based on number of shares traded. Even on the BSE, the stock traded worth Rs.36.94 crore making Metro Brands the twelfth most active stock on BSE in on trading value.