Campus activewear shares surge 42% on issue price on listing day; What should investors do in this counter?

Shares of Campus activewear surged as much as 42% on their issue price on the day of its listing on the bourses on Monday. After opening strongly with over 21% premium in a falling market, the share gained more than 20% to hit the day's high of Rs 417.70 per share on the BSE.  

Shares of Campus Activewear IPO were listed at Rs 355 apiece, at the upper end of the price band of Rs 292, up Rs 63 or higher by 21.58%on the BSE on Monday.  

At 12.30 pm, the scrip was trading at Rs 396.45 per equity share, a gain of 35.77% on the issue price and over 11%on its listing price. 

Meanwhile, as the issue saw a robust listing on the exchanges, analysts and market experts were bullish on the shares in the long term. " There is no problem with the stock. Long-term investors should certainly hold it.  

Zee Business Managing Editor Anil Singhvi has recommended to apply in this IPO for reasonable listing gain and suggested to hold in with long-term objective. He said short-term investors should use stoploss of Rs 290 given the current market conditions to ensure capital protection.  

The company’s good listing during such a volatile market highlights the inherent strength in the company’s business and fundamentals, said Santosh Meena, Head of Research, Swastika Investmart Ltd. 

He said Campus Activewear Limited is India's largest sports and athleisure footwear brand, enjoys competitive advantages like integrated manufacturing facilities, strong brand recognition and 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," he added.  

Earlier, Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd, Tthe company has a huge runway of growth and the long term prospects are good. The current grey market premium is about Rs. 65 i.e. about 22% above its upper band price, and we expect similar listing gains for the issue, he said. 

"However, current volatile market conditions might be detrimental for its listing. Nevertheless, we recommend investors to stay with the company for the long term," the expert added.  

About the company 

Campus Activewear Ltd is primarily engaged in the manufacturing, distribution and sales of sports and athleisure footwear products. It is the largest sports and athleisure footwear brand in India in terms of value and volume in Fiscal 2021, as per Marwadi Financial Services. 

The company is the fastest growing scaled sports and athleisure footwear brand (scaled brands being brands with over ₹ 2 billion of revenue in Fiscal 2019) in India over Fiscal 2019 to Fiscal 2021, the brokerage had said in the IPO note. 

The company’s product portfolio is extensive with 1,433 active styles for men, 241 active styles for women and 485 active styles for kids and children as on December 31, 2021