Campus Activewear IPO (Initial Public Offering) will open for subscription tomorrow (26 April 2022). The public issue will remain open for bidding till 28 April. The price band for the IPO has been fixed at Rs 278 to Rs 292 per equity share. The company aims to raise Rs 1,400.14 crore from this public issue through issuance of 4.79 crore equity shares. The likely date for share allotment for this IPO is 4 May, and the shares will be listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The official registrar of this public issue is Link Intime India Private Ltd. Ahead of the issue opening, Campus Activewear IPO grey market premium is seen rising consistently to Rs 85 on Monday from Rs 60 yesterday.
Campus Activewear IPO details:
Issue size: The company aims to raise Rs 1400.14 crore from this public issue through issuance of 47,950,000 equity shares.
Lot size, Bid limit: A bidder will be able to apply for the IPO in lots and one lot will comprise 51 shares of the company. A bidder can apply for minimum one lot and maximum for 13 lots. Minimum amount required for investing in Campus Activewear IPO is Rs 14,892 whereas maximum investment limit is Rs 1,93,596.
Listing date: The tentative date for Campus Activewear share listing is 9 May 2022.
Campus Activewear IPO GMP: Shares of Campus Activewear are available at a premium of Rs 85, Rs 25 higher from its Sunday GMP of Rs 60 and Saturday GMP of Rs 53.
Campus Activewear IPO: Should you subscribe? What analysts say
Anand Rathi Financial Services: Subscribe
Campus Activewear is a lifestyle-oriented sports and athleisure footwear company offering diverse products for the entire family. Its market share in branded sports and athleisure footwear increased to around17% in FY21 from 15% in FY20. Anand Rathi has a Subscribe rating on the public issue. “At the high of the issue price-band (Rs 292), the stock is valued at 66x FY20 EV/EBITDA and 142x P/E. Footwear companies quote at an average EV/EBITDA of 35.7x/29.5x FY23e/FY24e and P/Es of 64x/51x. We reckon operations in a fast-growing segment, a high and rising market share and strong financials are positives. Risks: Strong international brands in a competitive sector, rise in raw-material prices,” it said.
Santosh Meena, Head of Research, Swastika Investmart: Long-term investors may apply
“Campus Activewear Limited is India’s largest sports and athleisure footwear brand, it enjoys competitive advantages like integrated manufacturing facilities, strong brand recognition, 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.”
Angel One: Neutral
“Campus is the largest sports and athleisure footwear brand in India, both in terms of value and volume in Fiscal 2021. In terms of valuations, the post-issue TTM P/E works out to 93.4x (at the upper end of the issue price band), which is high considering Company’s negative PAT CAGR of ~17 % over FY19-21. However, CAL has strong brands and wide range of products but we believe that these positives are captured in the valuations commanded by the company. Thus, we have a NEUTRAL rating on the issue.”
Kotak Securities: Not Rated
“Campus offers one of the widest portfolios of footwear products among sports and athleisure footwear brands in India in terms of SKUs as of September 30, 2021. They cover more than 85% of the total addressable market for sports and athleisure footwear in India as of FY21, which is the largest market coverage amongst key sports and athleisure footwear brands. Campus sells their products across price points, geographical locations, and demographics, using their ‘Omnichannel experience’. They are therefore able to cater to the varied requirements of their consumers as well as provide them with the ease of purchasing their products using the channel most suited to them.”
Axis Capital: Not Rated
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.
(The recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
