Campus Activewear Limited IPO
a) Campus Activewear is the largest sports and athleisure footwear brand in India in terms of value and volume in Fiscal 2021. They offer multiple choices across styles, color palettes, price points, and an attractive product value proposition.
❖ Campus 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 company had an approximately 15% market share in the branded sports and athleisure footwear industry in India by value for Fiscal 2020, which increased to approximately 17% in Fiscal 2021.
❖ Campus is are one of the very few established Indian brands in a segment which is primarily dominated by international brands.
❖ Campus is one of the most relevant brands in this segment, covering more than 85% of the total addressable market for sports and athleisure footwear in India as of Fiscal 2021.
b) The company have a design team that comprises our in-house team in India as well as a design consultancy arrangement in China, their in-house team comprises 49 designers based out of India. The Company is typically able to launch our products within 120 to 180 days from the date of product conceptualisation.
c) The company have over 400 distributors directly servicing and fulfilling orders of over 18,200 geographically mapped retailers at a pan-India level.
Manufacturing Facility of Campus IPO
(i) They own and operate five manufacturing facilities across India with an installed annual capacity for assembly of 28.80 million pairs as on December 31, 2021.
(ii) Their manufacturing facilities have installed capacity to manufacture 4.80 million footwear uppers and 10.80 million footwear soles annually as on December 31, 2021.
(iii) Campus manufacturing facilities give them the ability to manufacture 37.50% of the requirements of soles and 16.67% of footwear uppers in-house and 100% in-house assembly of all the products
Management of Campus IPO
The Chairman of Campus has over 37 years of experience in the footwear industry in India. The senior management team is a professional team with a combined experience of over 125 years in FMCG, retail, technology and consulting businesses. They have the backing of two marquee investors, TPG Growth III SF Pte. Ltd. and QRG Enterprises Limited.
How much Selling Private Equity Investors are making in the IPO?
In this IPO, Campus will not get anything because it is a pure OFS.
|Selling Shareholders||Total Shares||Offer Shares||Cost of Acquisition||Selling Price||Profit||CAGR|
|TPG Investment||52,307,692||29,100,000||54.67||292||690 Cr||
|QRG Enterprise||11,759,292||6,050,000||54.67||292||144 Cr|
i. India’s largest sports and athleisure footwear brand
ii. Sustained focus on design and product innovation facilitating
iii. Difficult to replicate integrated manufacturing capabilities supported by robust supply chain
Objects of the Campus Activewear Limited IPO:
Campus Activewear Limited IPO Details:
|Open Date:||Apr 26 2022|
|Close Date:||Apr 28 2022|
|Face Value:||₹ 5 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||1400 Cr.|
|Lot Size:||51 Shares|
|Issue Price:||₹ 278-292 Per Equity Share|
|Listing Date:||May 09 2022|
Promoters And Management:
Financials of Campus Activewear Limited IPO:
|Particulars (in Cr.)||Dec-21||Mar-21||Mar-20||Mar-19|
|Cost of Material Consumed||462||401||414||324|
|Purchases of Stock in Trade||13||4||0||10|
|Change in Inventories||-59||-30||-34||-13|
|Employee Benefits Expense||48||55||57||43|
|Profit before tax||114||70||99||66|
|Total Tax Exps||-29||-43||-36||-28|
|No. of shares||30.43||30.43||30.43||30.43|
Comparison With Peers:
|Name of the company||Revenue||PAT||NPM||EPS||P/E||Mcap||RONW (%)||ROCE%|
|Campus Activewear Limited||715||27||3.78%||0.88||331||8886||8.60%||19%|
|Bata India Limited||1,700||-89||NA||-6.95||N.A.||25,000||-5%||NA|
|Relaxo Footwears Limited||2,300||292||12.70%||11.74||104||27,000||18%||26%|