Campus Activewear IPO: The IPO of Campus Activewear IPO will open tomorrow, i.e. April 26. The issue will open for subscription on Tuesday, April 26, and can be subscribed to till Thursday, April 28. The company will sell its shares in the range of Rs 278-292 per equity share. Hari Krishna Agarwal and Nikhil Aggarwal, promoters of the company will offload about 12.5 million equity shares in the OFS, whereas TPG Growth III SF Pte Ltd will sell up to 29.1 million shares and QRG Enterprises up to 6.05 million shares.
Campus Activewear IPO: Lot Size
The company will raise Rs 1,400 crore through the issue, which is entirely an offer-for-sale (OFS) from the promoters and existing shareholders of the company. They will offload 4,79,50,000 shares with a face value of Rs 5 each, in the OFS. The company will not receive any proceeds from the issue.
Campus Activewear IPO: Listing and Allotment Date
Allotment of IPO shares will be finalised on May 4, whereas initiation of refunds will kick off from May 5. Shares will be credited into demat accounts on May 6. IPO listing is likely by May 9.
Delhi’s headquartered Campus Activewear manufactures and distributes a variety of footwear like running shoes, walking shoes, casual shoes, floaters, slippers, flip flops, and sandals in multiple colours and styles at affordable prices. Campus Activewear sells its products through online platforms and offline stores. It has a pan-India trade distribution network, with over 400 distributors in 28 states and 625 cities. The company also has 18,200 retailers across India.
Campus Activewear IPO: Financials
The company reported a net profit of Rs 26.86 crore in financial 2020-21, a 57 per cent drop compared to its bottomline of Rs 62.37 crore in the previous year. Revenue declined about 3 per cent to Rs 715.08 crore.For the nine months ended December 31, 2021, the company reported a net profit of Rs 84.80 crore with a total revenue of Rs 843.94 crore.
Campus Activewear IPO: GMP
The gray market trend ahead of the IPO is looking quite positive. Today the GMP of the campus is Rs 60. A day ago the GMP of the campus was Rs 53. That is, the company’s performance in the gray market has been good so far. Analysts watching the market say today’s Campus IPO GMP is Rs.60. Which is Rs 7 more than yesterday. Prices in the gray market have seen a jump of 18 to 20 per cent in the last three days. This shows that the IPO will get good subscribers.
Campus Activewear IPO: What do Analysts Say?
Talking about the strengths of the footwear company, analysts at Axis Capital said that Campus is the largest sports and athleisure footwear brand in India, both in terms of value and volume in Fiscal 2021. “Campus is the fastest growing scaled sports and athleisure footwear brand (scaled brands being brands with over Rs 2 billion of revenue in Fiscal 2019) in India over Fiscal 2019 to Fiscal 2021,” the brokerage note said.
Santosh Meena. Head of Research, Swastika Investmart Ltd., said: “Campus Activewear Limited is India’s largest sports and athleisure footwear brand, it enjoys competitive advantages like integrated manufacturing facilities, strong brand recognition, and robust distribution network. The company has good growth prospects, good relationships with its stockists & suppliers, a focus on in-house designing, and an enviable supply chain network. However, all the positives are priced in as the share is priced at a PE of 78.5 (annualized FY 22 earnings), and being an OFS we recommend this issue for long-term investors only.”
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