Campus Activewear has set the price band of its IPO at Rs 278-292 per equity share of face value of Rs 5 each. The public issue comprises an entire offer for sale of up to 4.79 crore shares by its existing shareholders and promoters. The sports and athleisure footwear company will raise Rs 1,400 crore through initial public offering, which is scheduled to open on 26 April and close on 28 April. The company will not receive any proceeds from the offer for sale. Before heading into the IPO, the bidding for anchor investors will open on Monday, 25 April 2022, as per the information provided in the red herring prospectus (RHP).
On listing, Campus Activewear will join other listed footwear peers such as Bata India, Relaxo Footwears, Khadim India, Liberty Shoes, Metro Brands and Mirza International. Campus Activewear IPO is likely to list on stock exchanges on 9 May 2022, according to RHP. In the grey market, Campus Activewear IPO shares were seen trading at a premium of Rs 50 per share or 17 per cent. On Thursday, the stock was ruling at Rs 342 in the grey market, as against the IPO size of Rs 292 apiece, according to the people who deal in unlisted shares of the companies.
Investors can make bids in a lot size of 51 equity shares and in multiples thereafter. Investors would require a minimum of Rs 14,892 to buy a single of Campus Activewear. Up to 50 per cent of the net offer will be reserved for Qualified Institutional Investors (QIBs), 15 per cent for Non-Institutional Investors (NIIs), and the remaining 35 per cent for retail investors. Retail individual bidders would be those who have bid for the equity shares for an amount not more than Rs 2 lakh in the offer. Also, up to 2 lakh shares will be reserved for eligible employees. A discount of Rs 27 per equity share will be offered to eligible employees bidding in the employee reservation portion.
The average cost of acquisition of equity shares for the selling shareholders ranges from Rs 0-55.90 per equity share. Campus Activewear said that there have been volatile fluctuations in its revenues and financial parameters such as profit after tax margin, earnings before interest, taxes, depreciation and amortisation (EBITDA) margin and gross margin in the past. Campus Activewear claims a market share of 17 per cent in branded sports and athleisure footwear industry in India by value for FY21.
