Footwear company Campus Activewear will launch its Rs 1,400-crore worth initial public offering (IPO) in the last week of April.
The Delhi-based company had filed the draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) last year.
Campus Shoes IPO will open for public subscription on April 26 and close on April 28. The allotment of shares will take place of May 4 and the company plans to list its shares on the exchanges on May 9.
The company has set the IPO price band at Rs 278-292 per share. Campus Activewear IPO is a pure offer for sale (OFS) of up to 4.79 crore equity shares by existing shareholders and promoters. At the upper price band, the company aims to raise around Rs 1,400 crore from the IPO.
Promoters Hari Krishan Agarwal and Nikhil Aggarwal and other investors including TPG Growth III SF Pte Ltd, QRG Enterprises Ltd, Rajiv Goel and Rajesh Kumar Gupta will tender their shares in the OFS.
Currently, the promoters of Campus Shoes hold a 78.21% stake in the company. TPG Growth and QRG Enterprises own 17.19% and 3.86%, respectively. The remaining 0.74% is held by employees of Campus Shoes and individual shareholders.
JM Financial Ltd, BofA Securities Ltd, CLSA India Pvt Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers of the Campus Shoes IPO.
Objectives of Campus Activewear IPO
The company aims to unlock the value for its existing investors and promoters via the public issue. It also plans to expand its distribution network and solidify its position in western and southern India. Campus Shoes IPO will also help the company foray into the women and kids’ portfolio.
“Campus will continue to build the D2C channel for driving premiumization and growth in other consumer segments like women and kids. We expect that these initiatives will substantially increase our network coverage across India,” Raman Chawla, CFO at Campus Activewear told PTI.
According to Chawla, 20% of Campus Shoes’ business now comes from e-commerce platforms. He added that the revenue from these platforms has grown from Rs 20 crore to Rs 400 crore in the last three years.
Chawala said the company is still planning to expand further in the domestic markets. As of FY21, Campus Shoes has a 17% market share in the Rs 9,000-crore branded sports and leisure footwear industry. They cover over 85% of the total market for sports and athleisure as of FY21.
About Campus Shoes
Campus Shoes, one of the leading players in the sports and casual footwear segment in India, was founded by Hari Krishan Agarwal in 2006.
Currently, the company has around 100 exclusive brand stores across the country. Of this, 65 are company-owned, and the rest are on the franchise model. Campus Shoes has an installed capacity to manufacture 25.6 million pairs annually.
Campus Shoes has five manufacturing facilities located in states like Uttarakhand, Himachal Pradesh and its operations are spread across 28 states and 652 cities.
Campus Shoes financials
According to Chawla, Campus Shoes has grown at a compounded annual growth rate (CAGR) of 25% over the last decade. Despite operations being hit due to the pandemic, the company generated Rs 711.28 crore in revenue in FY21. Profit after tax (PAT) stood at Rs 26.87 crore, while earnings per share (EPS) was Rs 0.88.
How can you apply for Campus Activewear IPO?
Investors who want to apply for Campus Activewear IPO must have a demat account, trading account, mobile number linked to the bank account and UPI ID. Follow the below steps to apply for the IPO:
- Login to BOX on the TradeSmart platform
- Select the ‘IPO’ option under the portfolio menu
- From the list of Current and Upcoming IPO’s, click on BID
- Enter your UPI ID
-Please make sure the UPI ID is mapped to your personal bank account
-The IPO application is liable to get rejected if the person who is applying is different from the one whose bank account is used to apply. Third person bank accounts are not accepted.
- Place your bid(s). Please note the below points.
– While placing the bids, only quantity that is a multiple of the lot size is allowed.
– If you wish to apply at the cut-off price, simply click on the checkbox next to ‘Cutoff-price’. If you want to place a bid at a different price, you can do so by entering a price in the ‘Price’ field.
– Once you’ve completed all these steps, click on the checkbox to confirm that you have read the RHP and other documents.
– Click on Continue
- Accept mandate request on your UPI App
At the end of the day after submitting the IPO bid, you will receive an SMS from the exchange confirming your application. You may also check the status of your bid in My Applications tab.