Campus Activewear to List Today: Shares of Campus Activewear made their D-street debut today. Shares of Campus Activewear began trading at Rs 355 per share, up 21.58 per cent or Rs 63 from the upper end of IPO price band of Rs 292 per share on BSE, and the scrip got listed at Rs 360 on the NSE which translates into a listing gain of 23 per cent, despite weak global sentiment continued to weigh on equities. At 10 am, the overall markets were in the tight grip of bears. The Sensex was down 607.08 points or 1.11 per cent at 54228.50, and the Nifty was down 182.30 points or 1.11 per cent at 16229.
The public issue had received healthy subscription of 51.75 times during April 26-28 with support from investors of all categories. Qualified institutional investors were at the fore by putting in bids 152 times the allotted quota, while non-institutional investors bid 22.25 times the reserved portion. The portion set aside for retail investors was subscribed 7.68 times and employees 2.11 times.
The leading footwear company has mopped up Rs 1,400 crore through its public issue. It was an offer for sale, hence, the company did not receive any money from the public issue. The selling shareholders have received IPO funds.
It has one of the widest product portfolio, targeting diverse customer segments through pan-India presence (covers >85 percent of addressable market) and robust omni-channel platform.
Promoted by Hari Krishna Agrawal in 2006, Campus Activewear is the leading player in the organized sports and athleisure footwear market in India with a 17 percent market share. Campus is one of the few domestic brands in a category which is primarily dominated by international brands.
On listing, Campus Activewear has joined listed footwear peers such as Bata India, Relaxo Footwears, Khadim India, Liberty Shoes, Metro Brands and Mirza International.
Campus Activewear: Should You Book Listing Gains or Hold?
Santosh Meena, head of research, Swastika Investmart Ltd., said: “Campus Activewear Limited has debuted at Rs. 360 i.e. 23 per cent above its issue price. The company’s good listing during such a volatile market highlights the inherent strength of the company’s business and fundamentals. Campus Activewear Limited is India’s largest sports and athleisure footwear brand that enjoys competitive advantages like integrated manufacturing facilities, strong brand recognition and a robust distribution network. The company has a huge runway of growth and the long-term prospects are good. Those who applied for listing gains can maintain a stop loss of Rs. 300. We recommend this stock for the long term to both existing and new investors.”
Amarjeet S Maurya, AVP – Mid Caps, Angel One Ltd., said: “Campus Activewear (CAL) 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 a wide range of products but we believe that these positives are captured in the valuations commanded by the company. If any listing gains on stock, we recommend book the profits.”
Analysts at research and brokerage firm Motilal Oswal Financial Services said that Campus Activewear with leading market share in India’s branded S&A footwear, is well placed to capture the highly underpenetrated and fast growing footwear segment in India. On 9MFY22 annualised EV/Sales basis Campus is valued at 8.1x and seems reasonable compared to ~10x for both Bata and Relaxo. Given Campus’ presence in niche S&A segment with pan-India omni-channel presence, along with strong financials, the research firm had suggested investors to subscribe to the IPO.
Read all the Latest Business News here
Comments
0 comment