Campus Activewear's ₹1,400 cr IPO opens: All you need to know

The three-day initial public offering (IPO) of TPG-backed sports and athleisure footwear company Campus Activewear Ltd has opened for subscription today, i.e. April 26, 2022. The IPO is an offer for sale (OFS), which comprises the sale of up to 47,950,000 equity shares of face value ₹5 each held by promoters and other stakeholders. Bidders can place bids in lot size of 51 shares or multiples thereof. The company aims to raise ₹1,400 crore via the IPO, for which the price band has been fixed at ₹278-292 per share. The IPO values the company at ₹8,836.3 crore.

Those selling shares in the OFS are promoters Hari Krishan Agarwal and Nikhil Agarwal, and other investors like TPG Growth III SF Pte Ltd, Rajiv Goel and Rajesh Kumar Gupta. Since it's an OFS, the proceeds from the IPO would go to the shareholders. The employee reservation portion will be up to 5% of its post-offer paid-up equity share capital, while the offer and the net offer will constitute 15.76% and 15.69%, respectively, of the post-offer paid-up equity share capital, the filing said.

The anchor investors placed their bid on April 25, 2022, while bids for other investors opened on April 26 and will go on till April 28. JM Financial Ltd, BofA Securities India Ltd, CLSA India Private Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers of the IPO. The equity shares offered through the red herring prospectus are proposed to be listed on the BSE and NSE.

Campus Activewear IPO details

Campus Activewear claims to be the largest sports and athleisure footwear brand in India in terms of value and volume in fiscal 2021. "Our value in fiscal 2021 was ₹711.2 crore constituting 100% of our revenue from operations and our volume in fiscal 2021 was 13 million pairs, constituting 100% of total volume sold," the filing said.

The company's ‘Campus’ brand was launched in 2005. Now it holds around 15% market share in the branded sports and athleisure footwear industry in India by value for fiscal 2020, which increased to around 17% in fiscal 2021, the filing adds.

Notably, Campus Activewear IPO comes following a poor show by new-age companies like Paytm and Zomato amid a global equity selloff. Both these issues had failed to garner enough response from investors.

The company filing says India is mirroring the global trend with respect to sports and athleisure and outpaced the global growth rate of the segment. “The domestic footwear retail market in India was at ₹72,000 crore in FY 2020, which is projected to grow at a CAGR of 8% to reach ₹1,05,000 crore by FY 2025,” the filing said.