Campus Activewear IPO opens today: Apply or skip - What should investors do? Here is what Anil Singhvi, analysts recommend

Campus Activewear IPO: The initial public offering (IPO) of Campus Activewear is all set to open today, April 26, 2022. The three-day Rs 1,400 crore IPO will close on Thursday, April 28, 2022. The issue is entirely an offer-for-sale (OFS) from the promoters and existing shareholders of the company. 

Ahead of the subscription, Athleisure footwear company Campus Activewear on Monday said it has garnered a little over Rs 418 crore from 32 anchor investors ahead of its initial share-sale. 

The company has decided to allocate a total of 14,325,000 equity shares to anchor investors at Rs 292 apiece, aggregating the transaction size to Rs 418.29 crore, according to a circular uploaded on the BSE website. 

Abu Dhabi Investment (6.4%), Fidelity (6.4%), The Nomura (6.4%), East Spring (6.4%), Ashoka India (6.4%), HDFC trustee (6.4%), ICICI Pru (10.1%), Nippon Life (6.4%), Societe general, Goldman, Motilal Oswal, Invesco among other marquee investors. 

Anil Singhvi, Managing Editor, Zee Business 

As the IPO is all set open on Tuesday, Zee Business Managing Editor Anil Singhvi and other experts have suggested to subscribe the issue.  

Anil Singhvi, while listing the positives and negatives of the company, recommended applying for reasonable listing gains with long-term approach. 

Speaking of positive market guru Anil Singhvi said, the Athleisure footwear company is a strong brand and commands market presence. It also boasts of strong demand and a growth outlook and has strong finances with free cash flow. Besides, it also has good anchor book, said Zee Business Managing Editor.  

आज से कैंपस एक्टिववियर का IPO, प्राइस बैंड: ₹278-292

कैंपस एक्टिववियर में क्या है खास?

IPO सब्सक्राइब करें या छोड़ दें?

जानिए अनिल सिंघवी की राय...#ZeeBusiness LIVEhttps://t.co/TmOabzHv6f#CampusActivewearIPO #IPOAlert @AnilSinghvi_ pic.twitter.com/apN4TiwFus

— Zee Business (@ZeeBusiness) April 26, 2022

Santosh Meena, Head of Research, Swastika Investmart Ltd 

Campus Activewear Limited is India's largest sports and athleisure footwear brand. It enjoys competitive advantages like integrated manufacturing facilities, strong brand recognition and robust distribution network. The company has a 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. 

Marwadi Financial Services 

Considering the TTM (Dec 21) EPS of Rs 3.12 on a post issue basis, the company is going to list at a P/E of 93.72x with a market cap of Rs.88,863 mn whereas its peers namely Relaxo Footwear and Bata India Ltd are trading at PE of 103x and 357x.  

We assign “Subscribe” rating to this IPO as the company is the largest sports and athleisure footwear brand having 17% market share in India by value. Also, it is available at reasonable valuation as compared to its peers. 

About Campus Activewear IPO 

Meanwhile, the issue, with a price band of Rs 278-292 a share, will raise Rs 1,400-crore at the upper end of the price band. Investors can bid for a minimum of 51 shares and in multiples thereof. 

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Further, two lakh shares have been reserved for the company's employees. 

BofA Securities India, JM Financial, CLSA India and Kotak Mahindra Capital Company are the merchant bankers that advise the company on the public issue.