Campus Activewear IPO (Initial Public Offering) will open for subscription tomorrow (26 April 2022). The public subject will stay open for bidding until 28 April. The value band for the IPO has been fastened at Rs 278 to Rs 292 per fairness share. The firm goals to boost Rs 1,400.14 crore from this public subject by issuance of 4.79 crore fairness shares. The possible date for share allotment for this IPO is 4 May, and the shares will probably be listed on each National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The official registrar of this public subject is Link Intime India Private Ltd. Ahead of the difficulty opening, Campus Activewear IPO gray market premium is seen rising constantly to Rs 85 on Monday from Rs 60 yesterday.
Campus Activewear IPO particulars:
Issue dimension: The firm goals to boost Rs 1400.14 crore from this public subject by issuance of 47,950,000 fairness shares.
Lot dimension, Bid restrict: A bidder will be capable to apply for the IPO in tons and one lot will comprise 51 shares of the corporate. A bidder can apply for minimal one lot and most for 13 tons. Minimum quantity required for investing in Campus Activewear IPO is Rs 14,892 whereas most funding restrict is Rs 1,93,596.
Listing date: The tentative date for Campus Activewear share itemizing is 9 May 2022.
Campus Activewear IPO GMP: Shares of Campus Activewear can be found at a premium of Rs 85, Rs 25 greater from its Sunday GMP of Rs 60 and Saturday GMP of Rs 53.
Campus Activewear IPO: Should you subscribe? What analysts say
Anand Rathi Financial Services: Subscribe
Campus Activewear is a lifestyle-oriented sports activities and athleisure footwear firm providing various merchandise for your complete household. Its market share in branded sports activities and athleisure footwear elevated to around17% in FY21 from 15% in FY20. Anand Rathi has a Subscribe score on the general public subject. “At the high of the issue price-band (Rs 292), 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. We reckon operations in a fast-growing segment, a high and rising market share and strong financials are positives. Risks: Strong international brands in a competitive sector, rise in raw-material prices,” it stated.
Santosh Meena, Head of Research, Swastika Investmart: Long-term buyers could apply
“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.”
Angel One: Neutral
“Campus is the largest sports and athleisure footwear brand in India, both in terms of value and volume in Fiscal 2021. In terms of valuations, the post-issue TTM P/E works out to 93.4x (at the upper end of the issue price band), which is high considering Company’s negative PAT CAGR of ~17 % over FY19-21. However, CAL has strong brands and wide range of products but we believe that these positives are captured in the valuations commanded by the company. Thus, we have a NEUTRAL rating on the issue.”
Kotak Securities: Not Rated
“Campus offers one of the widest portfolios of footwear products among sports and athleisure footwear brands in India in terms of SKUs as of September 30, 2021. They cover more than 85% of the total addressable market for sports and athleisure footwear in India as of FY21, which is the largest market coverage amongst key sports and athleisure footwear brands. Campus sells their products across price points, geographical locations, and demographics, using their ‘Omnichannel experience’. They are therefore able to cater to the varied requirements of their consumers as well as provide them with the ease of purchasing their products using the channel most suited to them.”
Axis Capital: Not Rated
Talking in regards to the strengths of the footwear firm, analysts at Axis Capital stated that Campus is the most important sports activities and athleisure footwear model in India, each by way of worth and quantity in Fiscal 2021. “Campus is the fastest growing scaled sports and athleisure footwear brand (scaled brands being brands with over Rs 2 billion of revenue in Fiscal 2019) in India over Fiscal 2019 to Fiscal 2021,” the brokerage observe stated.
(The suggestions on this story are by the respective analysis analysts and brokerage corporations. Financial Express Online doesn’t bear any accountability for his or her funding recommendation. Capital markets investments are topic to guidelines and rules. Please seek the advice of your funding advisor earlier than investing.)
Source: www.financialexpress.com”