Campus Activewear IPO
Campus Activewear is India's largest sports and athleisure footwear brand. And its IPO opens tomorrow.
Should I invest or not? Well, Let's see (Take a look at few important details)
About the company:
Introduced in 2005, Campus provides lifestyle oriented footwear products, suitable for everyone. Campus covers more than 85% of addressable market for sports and athleisure footwear in India as of Fiscal year 2021.
Nikhil Aggarwal, CEO, Campus Shoes Activewear once said, “Campus Shoes has embarked on a journey that puts impetus on bringing technology driven premium shoes for Indian Market".
And they are, as they say, one of the few established Indian brands in a segment which is primarily dominated by international markets.
Their Products are available at over 15000 multi-brand retail stores, company-owned outlets and e-commerce sites. Campus offers 800+ product designs across the casual, school, sports and sandal shoe category.
About the Previous Investors:
Campus Activewear has raised only one round of funding, from investors TPG Growth and QRG Enterprises. This, Private Equity round, was raised on Aug 31, 2017.
Currently, Campus Activewear Limited Promoters hold a stake of 78.2% in company and TPG Growth and ORG Enterprises own 17.1% and 3.8% respectively.
About the IPO:
◇The IPO will open for subscription on April 26, 2022 and will be kept open till April 28, 2022.
◇The offering is of ₹1400 crores. The company will sell 48 million shares at a price band of ₹ 278 - 292 per share in the issue.
◇The minimum investment one can make is ₹ 14,892 and maximum of ₹ 193596.
◇ So, the minimum bid (lot size) is of 51 shares per lot and as a bidder one can apply from one lot to maximum of 13 lots.
◇ BofA securities, JM financial, Kotak Mahindra Capital and CLSA India are bankers to the issue.
Some things to know before investing:
Industry Outlook:
◇ Retail Footwear industry is growing with faster pace in India and C is expected to grow by 17% CAGR by 2025.
◇ Some of the factors driving the growth of global footwear market include rising number of younger working population, increasing purchasing power of consumers, growth of fashion conscious population, and rising retail culture.
Company Financials:
Pros:
◇ Sales growth of more than 20% CAGR and profit growth of more than 40%, which is considered quite decent.
◇ Positive Cash from Operations.
◇ Manageable Debt to Equity ratio.
◇ High Growth Market
Cons:
◇ Competitive and Niche Market.
◇ Dependence on Men's footwear (their sales from men's category was almost 83%) which reduces the scope to grab other opportunities available in the market.
You can find many more details about company on company's website.
You can check Annual Reports and various other things for more details, however given information will be sufficient to make decision whether to invest in an IPO or not, especially for beginners.
Let me know your views in the comment.
Happy Investing!!
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