Campus Activewear IPO: Today is the last day to subscribe to shoe brand Campus Activewear IPO, which aims to raise Rs 1,400 crore through its initial public offering (IPO). The public offer is open for subscription on April 26, 2022 and closes today. The IPO is a complete offering 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 each.
Campus Activewear IPO: Subscription Status
The portions reserved for retail investors were subscribed 3.94 times, while those of non-institutional investors were booked 5.67 times on the Campus Activewear IPO offering. Qualified institutional investors bought shares 13 percent of the allocated quota, while employees offered 1.42 times the reserved share.
The size of Campus Activewear’s IPO offering has been reduced to 3.36 crore shares, from 4.79 crore shares after the company raised Rs 418.3 crore through its anchor book, out of a total issue size of nearly Rs 1,400 crore.
Campus Activewear IPO: GMP
Campus Activewear IPO gray market is also giving positive response regarding Campus Activewear IPO as the gray market premium (GMP) of the public issuance is constantly increasing. According to market observers, Campus Activewear shares are available today at a premium of Rs 105 in the gray market. Market observers said Campus Activewear IPO GMP today is Rs 105, which is Rs 5 higher than yesterday’s gray market of Rs 100. They said Campus Activewear IPO gray market premium is up despite negative secondary market sentiment, which is commendable. Market observers also believe that the gray market response could improve further, as today is the last day of bidding.
Since Campus Activewear IPO GMP is today Rs 105, it means that the gray market expects a Campus Activewear IPO listing around Rs 397 (Rs 292 + Rs 105), about 35 percent higher than the Campus Activewear IPO price band of Rs 278 to Rs. 292 per share. Market observers said the rising Campus Activewear IPO GMP could boost sentiment among those investors who are waiting and watching the situation.
Campus Activewear IPO: Should You Buy?
Santosh Meena, Head of Research at Swastika Investmart Ltd, gives a long-term ‘buy’ label to Campus Activewear IPO: “Campus Activewear Limited is India’s largest sports and athleisure footwear brand, enjoying competitive advantages such as integrated manufacturing facilities, strong brand recognition , robust distribution network. The company has good growth prospects, good relationships with its dealers and suppliers, a focus on in-house design and an enviable supply chain network. However, all positives are priced in as the stock is priced at a PE of 78 .5 (annualized earnings over 22 years), and as we are an OFS, we only recommend this issuance for long-term investors.”
“The company’s target segment is growing due to a combination of factors, such as the transition from a disorganized to an organized sector, driven by a greater preference for branded and quality footwear, greater health awareness, rising disposable income in India, favorable trends in the Indian demographics, such as increasing population of young adults and growing demand for women’s shoes,” according to KRChoksey Research.
Experts expect Indian retail footwear to show a compound annual growth rate of 8 percent over FY20-FY25, and 21.6 percent over FY21-FY25, one of the fastest-growing discretionary categories over this period. “Its leadership position in this high-growth sports and athleisure segment offers it the opportunity to expand its business and capitalize on growth in its target segment,” said an Anand Rathi Research report.
Campus has a market share of approximately 17 percent in branded sports and athleisure footwear in India and is one of the largest players in terms of volume (13.6 million pairs).
“We are awarding Subscribe’s rating for its niche positioning in a high-growth segment, which would enable it to deliver sustainable profitable growth,” said a report from ICICIdirect.
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