Legendary investor Rakesh Jhunjhunwala-backed Metro Brands' shares gained some strength after a weak debut in the secondary market on Wednesday. Mumbai-based multi-brand footwear retail chain Metro Brands' shares finished the listing day near the issue price of Rs 500, having begun their journey on stock exchanges BSE and NSE at a discount of close to 13 percent.

Share Market Live

NSE

The Metro Brands stock ended at Rs 502 on NSE, a premium of 0.4 percent over its issue price. It settled at Rs 493.6 apiece on BSE, a discount of 1.3 percent, though narrowing nearly all of its listing day discount.

Earlier on Wednesday, Metro Brands shares began their journey on stock exchanges BSE and NSE at a discount of nearly 13 percent to the issue price.

Metro Brands enters the secondary market at a time when most IPOs have received a robust response from investors, though the recent sell-off has dented the appeal of recent debutants.

"We are positive on stock for the long term on the back of the company's asset-light business, strong brands and wide range of products," said Amarjeet Maurya, AVP-Mid Caps at Angel One.

"We believe every dip in share prices provides buying opportunities to long term investors," he added.

The subdued market debut of Metro Brands shares was in tandem with the trend seen in the grey market ahead of the listing day. The company slipped into the discount zone days ahead of the listing on bourses BSE and NSE.

ALSO READ

: What grey market really is

Metro Brands had commanded a grey market premium (GMP) of Rs 25-80 during its IPO, which was open for subscription from December 10 to December 14.

Metro Brands' IPO was subscribed overall 3.6 times the shares on offer. The quotas reserved for qualified institutional buyers (QIBs) and non-institutional investors saw subscriptions of 8.5 times and three times respectively. The quota meant for retail investors was booked 1.1 times.

ALSO READ: How to read key IPO numbers, spot red flags in DRHP

Catch latest stock market updates