Metro Brands shares are going to hit primary markets today. As per the information available at BSE website, shares of the Rakesh Jhunjhunwala-backed company shall be listed and admitted to dealings on NSE and BSE in the list of 'B' Group of Securities. According to stock market experts, Metro Brands shares may have a muted listing despite Rakesh Jhunjhunwala tag. They went on to add that Rakesh Jhunjhunwala-backed company's stock may open at 5 to 10 per cent discount.

Speaking on Metro Brands share listing gain; Manoj Dalmia, Founder & Director at Proficient Equities Limited said, "The public issue is highly priced that got reflected in tepid response from investors during bidding. The business model of the company is also facing huge competition and hence we are expecting the issue to list around Rs440 to Rs465 range, means at around 10 per cent discount."

The initial public offering (IPO) of footwear retailer Metro Brands Limited was subscribed 3.64 times on the last day of subscription that closed on December 14. The price range for the offer was Rs485-500 per share.

Expecting weak Metro Brands share listing; Amarjeet Maurya, AVP - Mid Caps at Angel One Ltd said, "On the listing day, We are expecting a slightly weak listing due to the company already commanding higher valuation and fear of new Covid variant omicron (will increase the possibility of lockdown). However, we are positive on stock for the long term on the back of asset light business, strong brands and wide range of products. Every dip in share prices provides buying opportunities to long term investors."

Highlighting upon the valuations that is going against Metro Brands share listing; Ricky Kirpalani, Lead Sponsor at First Water Capital Fund (AIF) said, "Metro Brands, like some of the recent IPOs has a relatively large OFS component and post-Star Health experience, investors may not be scrambling to buy into Metro Brands post-listing. If subscription numbers and recent market sentiment are anything to go by, the listing may well happen at a discount to the issue price. While the business model has great potential in a consumer driven economy, valuations maybe considered to be quite rich if you normalize numbers. We may not be surprised if the stock languishes in the medium-term and under-performs the broader markets."

Ravi Singhal, Vice Chairman of GCL Securities also expects muted listing. He predicts that the stock may list in the range of Rs450 to Rs525, depending upon the market sentiment. However, "one should immediately book profit as we are also expecting huge selloff post-listing." He advised allottees to book profit on immediate listing even when there is discounted opening for the public issue.

Predicting Metrod Brands IPO listing at discount; Aayush Agrawal, Senior Analyst at Swastika Investmart Ltd said, "Metro Brands Limited has shown growth, profitability, and financial discipline in the past, but the sector is widely underrated. The company has an asset-light business model and derives most of its revenues from third parties. We are seeing a change in IPO sentiment amid a slight decline in the market, and the last two debutants witnessed profit bookings post-listing, as well we are seeing a decline in the GMP for upcoming IPOs. We may see a discount listing of Metro Brands."

Metro Brands share listing: What GMP signals

According to market observers, Metro Brands IPO GMP today is minus Rs60 that means shares of Metro Brands are trading at a discount of Rs60 in Grey market today. So, one can expect Metro Brands share listing at around Rs440 ( Rs500 - Rs60), believe market observers.