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Campus Activewear IPO Day 2: Total subscription at 3.21 times, retail portion booked 3.94 times

Campus Activewear IPO | India's sports and athleisure footwear market is expected to grow at 25 percent CAGR over FY21-25, with share of branded products expected to rise to 60 percent versus 56 percent as of FY21.

April 27, 2022 / 05:55 PM IST
 
 
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The public issue of largest sports and athleisure footwear brand Campus Activewear has garnered bids for 10.79 crore equity shares against offer size of 3.36 crore equity shares, subscribing 3.21 times on April 27, the second day of bidding.

The 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.

The portions set aside for retail investors were subscribed 3.94 times while that of non-institutional investors was booked 5.67 times.

Qualified institutional investors bought shares 13 percent of allotted quota, while employees bid shares 1.42 times the reserved portion.

Private equity firm TPG-backed Campus Activewear's initial public offering had seen a good subscription on its first day of bidding, subscribing 1.24 times.

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The public issue is entirely an offer for sale by promoters and investors. Hence the company will not receive any money from the offer for sale. The price band for the offer, which closes on April 28, is Rs 278-292 per share.

Campus Activewear is a lifestyle-oriented sports and athleisure footwear company that offers a diverse product portfolio across styles, colour palettes, price points and an attractive product value proposition.

It is the largest sports and athleisure footwear brand in India, both in terms of value and volume in FY21 with market share of 17 percent.

Also Read Campus Activewear IPO opens | 10 key things to know before subscribing public issue

"Campus with leading market share in India’s branded sports and athleisure footwear, is well placed to capture the highly underpenetrated and fast growing footwear segment in India," Sneha Poddar, Research Analyst at Motilal Oswal said.

On nine months FY22 annualised enterprise value/Sales basis Campus is valued at 8.1x and seems reasonable compared to around 10x for both Bata and Relaxo, she feels. Given Campus' presence in niche S&A segment with pan-India omni-channel presence, along with strong financials, Motilal Oswal suggests investors to subscribe to the IPO, she said.

India's sports and athleisure footwear market is expected to grow at 25 percent CAGR over FY21-25, with share of branded products expected to rise to 60 percent versus 56 percent as of FY21.

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Campus plans to capture this growth with enhanced focus on women/kids segment (currently around 15 percent of FY21 revenue), deepening presence in western/southern markets (24.5 percent revenue share); sustained focus on premiumization and extension into casual wear.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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Moneycontrol News
first published: Apr 27, 2022 10:46 am
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