Campus Activewear IPO to open on 26th April
The much awaited IPO of Campus Activewear will open for subscription on 26th April and it would be entirely an offer for sale, with no fresh issue component. Here are 8 important things you must know about the IPO of Campus Activewear.
1) The Campus Activewear IPO will open for subscription on 26th April and close for subscription on 28th April. The company will finalize the anchor placement a day earlier on 25th April. The price band of the IPO has been set at Rs.278 to Rs.292.
2) The IPO is entirely an offer for sale with no fresh issue involved. The total offer for sale will be for 4.795 crore equity shares which at the upper price band pegs the issue size at Rs.1,400.14 crore.
Out of the total OFS of 4.795 crore shares, promoters Hari Krishan Agarwal, and Nikhil Aggarwal will offer 1.25 crore shares in total. Early PE investors, TPG Growth III, will offer 2.91 crore equity shares while another PE investors, QRG Enterprises, will sell 60.5 lakh shares in the OFS.
3) The market lot for the issue will be of 51 shares each and the retail investors can invest up to 13 lots of 663 shares valued at Rs.193,596 crore.
There will be an employee reservation up to 2 lakh shares and they will be entitled to a discount of Rs.27 per share on the final offer price.
4) The basis of allotment will be finalized for the issue on 04-May while the refunds to non-allocations will be initiated on 05-May. The shares are expected to be credited to the demat accounts of eligible allottees by 06-May while the stock is expected to be listed on the stock exchanges on 09-May. The offer will be 50% for QIBs and 35% for retail.
5) Campus Activewear is the largest sports and athletic leisure footwear brand in India in terms of value and volume as of FY21. The Campus brand was introduced in 2005, but it has been existence for a much longer period.
Campus Activewear has a 17% share of the branded sports and athleisure footwear market in India, and growing consistently. It competes with the likes of Bata and Relaxo in the Indian markets.
6) For the 9 month period ending Dec-21, Campus Activewear reported 5-fold growth in profits at Rs.84.80 crore. Revenues were also up by a whopping 93% YoY at Rs.842 crore. The EBITDA margins expanded from 12.45% to 19.63% on a YoY basis.
The company has also recovered from the constraints of COVID-19, being a highly contact intensive sector. It has sustained a robust average selling price per pair at Rs.615.
7) Post the issue, the promoter stake in the company will reduce from 78.21% to 74.10%. The company has the capacity to manufacture about 2.56 crore pairs per year. It has a network of over 18,200 retailers spread across the length and breadth of India.
8) The issue of Campus Activewear will be lead managed by JM Financial, BOFA Securities India, CLSA India, and Kotak Mahindra Capital Company , acting as the book running lead managers (BRLM) to the issue. Link Intime India will act as the registrars to the IPO.
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