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Latest IPO Campus Active wear ! Good for investment or not ?

This IPO subscribed 40% on day 1, retail quota booked 76% , Total Issue size Rs 1400 out of which Rs 418.3 crore was raised from anchor investors on April 25. The price band for the offer has been fixed at Rs 278-292 per share. Fund Raising and Objectives Of issue

Campus intends to garner Rs 1,331.62 crore at lower price band and Rs 1,398.68 crore at higher price band.


The public issue will open for subscription on April 26 and the last day of offer is on April 28.

The company will not get any money from this public issue and all the funds raised through offer will go to selling shareholders.





Company Profile and Industry

Campus Activewear is the largest sports and athleisure footwear brand in India in terms of value and volume in FY21 as per Technopak report.The Brand 'CAMPUS' in 2005 claimed that it is the fastest growing scaled sports and athleisure footwear brand in India over FY19-FY21.


The Indian footwear retail market is expected to grow at a CAGR of 8 percent from FY20 to FY25. India's specific industry segment of sports and athleisure footwear is highly under penetrated,


Financials

In the nine months period ended December 2021, Campus recorded a whopping 403 percent year-on-year growth in profit at Rs 84.80 crore on strong revenue growth and operating income . The average selling price per pair has consistently been higher at Rs 615 in nine months period ended December 2021, up significantly from Rs 533 in year-ago period. In FY21,


Hari Krishan Agarwal and Nikhil Aggarwal, the promoters of the company, held 73.92 percent equity stake in the company, while investors have 21.79 percent shareholding in the company including TPG Growth III SF Pte Ltd (with 17.19 percent stake), and QRG Enterprises (3.86 percent).


Risks

The sports and athleisure footwear industry is highly competitive.

Its online sales are dependent on sales channels controlled by third party online market places.

The company relies on third parties to manufacture slippers.


Domestic investors including HDFC Trustee, ICICI Prudential, HDFC Life Insurance Company, Nippon Life, Aditya Birla Sun Life, Franklin India, Motilal Oswal MF, and DSP MF also invested in the company via anchor book.


According to market observers, Campus Activewear IPO GMP (grey market premium) today is ₹72, which means grey market is expecting this IPO to list at around ₹364 ( ₹292 + ₹72).


Anand Rathi has given 'subscribe' tag to the IPO. Anand Rathi report on the public issue says that investors can rely on reasonable pricing, attractive valuation . Saurabh Joshi Research Analyst at Marwadi Financial Services said "Considering the TTM (Dec 21) EPS of ₹3.12 on a post-issue basis,the company is going to list at a P/E of 93.72x Relaxo Footwear and Bata India Ltd are trading at PE of 103x and 357x.


How to apply?


Bidders can login at the website of their broker or app (where they have their demat account), select Campus Activewear IPO, enter their UPI ID and select the investor type. The quantity should be a multiple of the lot size. If you wish to apply at the cut-off price, simply click on the checkbox next to ‘Cut-off price’. You will receive an SMS from the NPCI confirming your bid and requesting you to accept the mandate on your UPI app.


You can see the reference image below just for giving you the idea of Bidding for Ipo online . You can check this feature with your existing broker ,






Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Moneyplan.co.in . Investors should understand the risk involve before taking any decisions . we will not be responsible for any losses arising out of the actions taken by investors based on the contents of our website.

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