Campus Activewear IPO opens for subscription; raises Rs 418 crore from 32 anchor investors

Among marquee investors that bought a stake in Campus Activewear through the anchor portion include Abu Dhabi Investment Authority, Fidelity Funds, Nomura, and Eastspring Investments — picking up a 6.4% stake each.

A day prior to the issue opening the sports and athleisure focused footwear manufacturer has managed to raise Rs 418.3 crore from 32 anchor investors.

Campus Activewear’s Rs 1,400 crore IPO (Initial public offering) will open for subscription today. A day prior to the issue opening the sports and athleisure focused footwear manufacturer has managed to raise Rs 418.3 crore from 32 anchor investors. The list of anchor investors includes both domestic as well as global institutional investors. Campus Activewear IPO will remain open for subscription till April 28, Thursday. The issue is entirely an Offer For Sale (OFS) by existing shareholders. The public issue of Campus Activewear is the first IPO of the current financial year. 

Among marquee investors that bought a stake in Campus Activewear through the anchor portion include Abu Dhabi Investment Authority, Fidelity Funds, Nomura, and Eastspring Investments — all picking up a 6.4% stake worth Rs 26.8 crore per investor. Other anchor investors include HSBC Global Investment Funds, HDFC, ICICI Prudential, HDFC Life Insurance, Nippon Life India, Aditya Birla Sun Life, Invesco India, Franklin India, Motilal Oswal, CLSA Global, Societe Generale, BNP Paribas, and Goldman Sachs.

Campus Activewear has allocated a total of 1.4 crore equity shares to 32 anchor investors at Rs 292 per share. 

The price band for the issue has been set at Rs 278-292 per equity share of face value of Rs 5 each. From today, investors can bid for Campus IPO in a lot size of 51 equity shares and in multiples thereafter. Investors would need to shell out a minimum of Rs 14,892 to buy a single lot of Campus Activewear shares. Up to 50% of the offer will be reserved for Qualified Institutional Investors (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 35% for retail investors.

What do analysts say

Anand Rathi: Subscribe

“At the high of the issue price-band (Rs292), 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,” analysts at Anand Rathi said in a note. “We reckon operations in a fast-growing segment, a high and rising market share and strong financials are positives,” they added. The brokerage firm sees a rise in raw material prices as a risk for Campus Activewear. On successful listing, the company will join peers such as Relaxo, Bata India, and Metro Brands on the bourses.

IDBI Capital: Subscribe

IDBI Capital has given a ‘Subscribe’ rating to the issue. “With a foothold of ~17% market share in the branded sports and athleisure footwear industry in India and integrated manufacturing ecosystem which aids cost leadership advantage, the company is poised to deliver a sustainable earnings growth in future,” they said. Among key positives for the company, as seen by IDBI Capital are, its robust omnichannel sales and distribution network with a pan-India presence, integrated manufacturing capabilities supported by a robust supply chain, and a strong market share.

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