Campus Activewear shares plummet 12% in two sessions; here’s why

Shares of Campus Activewear continued losing streak on Monday, with the share price falling as much as 12% in two trading days after the U.S.-based alternative asset management firm TPG Global sold its entire stake in the company. TPG, through its affiliate TPG Growth III SF Pte, offloaded 7.6% stake in sports and athleisure footwear firm for ₹806 crore through an open market transaction on Friday.  

Extending its losing streak for the fifth straight session, Campus Activewear shares declined as much as 4% to hit an intraday low of 325 on the BSE. Early today, the stock opened a tad higher at ₹342 against the previous closing price of ₹338.75 apiece. On Friday, shares of Campus Activewear closed 8.72% lower at ₹338 per share on the NSE.

At the time of reporting, Campus Activewear shares were down 2.4% at ₹330.6 on the BSE, while the market capitalisation slipped to ₹10,072 crore. In contrast, the BSE benchmark Sensex was trading 345 points, or 0.6%, higher at 57,872 levels.

The Campus Activewear share price hit its all-time high mark of ₹640 touched on October 19, 2022, while it recorded a low of ₹296.85 on May 20, 2022. In the last one year, the stock has fallen nearly 13%, while it shed 42% in the six-month period. On the year-to-date (YTD) basis, the counter has dropped nearly 20%, while it shed 19% in a month and 12% in a week. The stock currently trades 11.3% higher than its IPO issue price of ₹292.

As per the bulk deal data available on the National Stock Exchange (NSE), TPG Growth III SF Pte sold 2.32 crore shares, or 7.6% stake, at an average price of ₹347.24 apiece, taking the transaction value to ₹805.86 crore. In September 2017, TPG Growth, the growth equity platform of TPG Global, and QRG, the family office of the promoters of Havells Group, had purchased a 20% stake in Campus Activewear. The asset management company had partially sold its stake in the company during the IPO in May last year.

The exchange data showed that foreign investors Fidelity Investments, and Societe Generale have acquired 2.98% stake in the footwear company via open market transactions. Investment Trust Fidelity Series Emerging Markets Opportunities Fund has bought 33.39 lakh shares, Fidelity Investment Trust Fidelity International Discovery Fund acquired 17.1 lakh shares, and Societe Generale purchased 40.56 lakh shares at an average price of ₹347 per share.

Campus Activewear made its debut on domestic stock exchanges on May 9, 2022, after raising ₹1,400 crore via initial public offering (IPO), which received robust demand from investors, especially from qualified institutional buyers. Ahead of the IPO, the company raised ₹418.29 crore from its anchor investors by issuing them 14,325,000 equity shares at ₹292 each. The marquee investors which participated in the pre-IPO round include Abu Dhabi Investment Authority, Fidelity Funds, Nomura, Societe Generale, BNP Paribas Arbitrage, and Goldman Sachs (Singapore) Pte.

For the December quarter of the current fiscal, the company reported 11.7% decline in consolidated net profit to ₹48.31 crore from ₹54.72 crore in Q3 FY22. However, revenue from operations rose 7.4% to ₹465.62 crore in Q3 FY23 as against ₹433.55 crore in the same period last year.