Campus Activewear IPO: Today is the last day to subscribe to Footwear brand Campus Activewear IPO which is looking to raise Rs 1,400 crore through the initial public offering (IPO). The public offer opened for subscription on April 26, 2022, and will be closing today. The IPO is a complete offer for sale (OFS) of 4.79 crore shares by promoters and shareholders of the company. The company is selling its shares in the range of Rs 278-292 apiece.
Campus Activewear IPO: Subscription Status
The portions set aside for retail investors were subscribed 3.94 times while that of non-institutional investors was booked 5.67 times on the Campus Activewear IPO offer. Qualified institutional investors bought shares 13 percent of the allotted quota, while employees bid shares 1.42 times the reserved portion.
The Campus Activewear IPO offer size has been reduced to 3.36 crore equity shares, from 4.79 crore equity shares after the company mopped up Rs 418.3 crore through its anchor book, out of total issue size of nearly Rs 1,400 crore.
Campus Activewear IPO: GMP
Campus Activewear IPO grey market is also giving a positive response in regard to Campus Activewear IPO as grey market premium (GMP) of the public issue has been rising continuously. According to market observers, Campus Activewear shares are available at a premium of Rs 105 in the grey market today. Market observers said that Campus Activewear IPO GMP today is Rs 105, which is Rs 5 higher than its yesterday’s grey market of Rs 100. They said that Campus Activewear IPO grey market premium has been rising despite negative sentiments in the secondary market, which is praiseworthy. Market observers also believe that grey market response may further improve as today is the last day of bidding.
As Campus Activewear IPO GMP today is Rs 105, it means the grey market is expecting Campus Activewear IPO listing around Rs 397 ( Rs 292 + Rs 105), around 35 per cent higher from Campus Activewear IPO price band of Rs 278 to Rs 292 per equity share. Market observers said that the rising Campus Activewear IPO GMP may boost the sentiment of those investors who are in wait and watch situation.
Campus Activewear IPO: Should You Buy?
Giving ‘buy’ tag for long term to Campus Activewear IPO, Santosh Meena, Head of Research at 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, 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.”
“The company’s target segment is growing due to a combination of factors such as transition from unorganised to organised sector driven by enhanced preference for branded and quality footwear, increasing health awareness, rising levels of disposable income in India, favourable trends in Indian demographics such as increasing population of young adults and growing demand for women’s footwear,” said KRChoksey Research.
Experts expect the Indian retail footwear to register an 8 per cent compound annual growth rate over FY20-FY25, and 21.6 per cent over FY21-FY25, one of the fastest growing discretionary categories in this period. “Its leading position in this fast-growing sports and athleisure segment provides it with an opportunity to expand its business and benefit from growth in its target segment,” said a report from Anand Rathi Research.
Campus has about 17 per cent market share in branded sports and athleisure footwear in India and is one of the largest players in terms of volume (13.6 million pairs).
“We assign Subscribe rating given its niche positioning in a fast-growing segment, which would enable it to deliver sustainable profitable growth,” said a report by ICICIdirect.