Campus Activewear Limited IPO

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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

Competitive Strengths
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:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and the offer for sale of up to 51,000,000 Equity Shares by the Selling Shareholders. So, this is a complete OFS.

Campus Activewear Limited IPO Details:

Open Date: Apr 26 2022
Close Date: Apr 28 2022
Total Shares: 47,950,000
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 At: NSE,BSE
Listing Date: May 09 2022

Promoters And Management:

i. Hari Krishan Agarwal is the Chairman and Managing Director of the Company. He has not completed his formal education. He has over 37 years of experience in the footwear industry in India. ii. Nikhil Aggarwal is a Whole-Time Director and the CEO of the Company. He holds a bachelor of science in industrial engineering from Purdue University. He received semester honors and citation on the dean’s list for outstanding scholarship performance for the spring semester 2004 at Purdue University. Further, he attended the Summer School Programme at the London School of Economics in 2007. He has completed the TPG-INSEAD C-Suite Workshop and the Leading The Effective Sales Force INSEAD Executive Education programmes held at INSEAD, Singapore. He has approximately 14 years of experience in the footwear manufacturing and trading sector. iii. Anil Rai Gupta is a Non-Independent Non-Executive Director on the Board of the Company. He holds a master of business administration from the Babcock Graduate School of Management, Wake Forest University. He has approximately 29 years of experience in the consumer electrical goods sector.

Financials of Campus Activewear Limited IPO:

Particulars (in Cr.) Dec-21 Mar-21 Mar-20 Mar-19
Sales 841 711 732 595
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
Other Expenses 215 166 159 131
Operating Profit 162 115 136 100
OPM % 19.26% 16.17% 18.58% 16.81%
Other Income 2 4 2 2
Interest 14 17 17 21
Depreciation 38 33 23 14
Profit before tax 114 70 99 66
Total Tax Exps -29 -43 -36 -28
Net Profit 85 27 62 39
NPM % 10.11% 3.80% 8.47% 6.55%
No. of shares 30.43 30.43 30.43 30.43
EPS 2.82 0.88 2.05 1.28

Comparison With Peers:

(Fig. in Crores)
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%
Note: Above numbers are for Financial Year FY20-21. 

Recommendation on Campus Activewear Limited IPO:

Review and Recommendation of  Campus IPO by InvestorZone is 4/10 1. Campus 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. 2. Campus own and operates 5 manufacturing facilities across India with an installed annual capacity for assembly of 28.80 million pairs as on December 31, 2021. They have the ability to increase production for assembly of up to 35.50 million pairs on an annual basis. Manufacturing of shoes required 3 things; Footwear Upper, Footwear Sole and Assembly of Footwear upper and sole to make a shoe. Assembly of shoes is 100% in-house but some % of Footwear Upper and Footwear sole manufacturing they depend upon third party. 3. Campus has omni-channel presence. i.e. they have ~20000 Retailers who are selling shoes offline for the company. They are also selling products online via Amazon, Flipkart and its own e-commerce website. In the south, they have more sales from online than offline. And, generally, online is a fast method to capture the market. 4. Revenue has grown from 732 Crores in FY19 to 841 Crores in 9MFY22. So, decent growth has posted by company. 5. Campus has able to reduce the receivables from 105 days in FY19 to 50 days in Fy21 as they have adopted the working capital loan arrangement for dealers and retailers, wherein they take their money directly from bank and don't have to depend upon dealers and retailers. Though till date only 51 i.e 18% of the dealers are in that network. However, if you compare it with Bata and Relaxo, they have better receivables days of 17 and 22 respectively. 6. PAT has also grown flat from 100 Crores in Fy19 to 114 Crores in 9MFY22. 7. Mcap = 8888 Crores and Sales of ~1000 Crores FY22(E). So, Mcap/Sales of ~9x. If you see, Relaxo with Mcap of 28000 Crores is trading at Mcap/Sales of 10.81x and Bata with Mcap of 25000 Crores, trading at Mcap/Sales of 10.35x. So, Almost nothing has been left on table. But Campus has better Operating margins of 19% as compared to 16% for Bata and 17% for Relaxo.  Relaxo has better ROCE of 26% as compare to 19% for Campus. 8. Problem why nothing has left on the table is the pure OFS and Private Equity investors i.e. TPG and QRG are taking partial exit from the company. They have invested in 2017 at Rs. ~54 per share after adjusting bonus and split, currently selling at Rs.292 per share, thereby clocking CAGR return of 40%.

Registrar of Campus Activewear Limited IPO:

  1. Link Intime India Private Limited

Company Address:

D-1, Udyog Nagar, Main Rohtak Road, New Delhi – 110041, Delhi, India Website: E-mail:

Discussion on Campus Activewear Limited IPO:


    Very good management of screen today by company.

    How Campus Sale Its shoes?

    1. Campus has over 425 distributors directly servicing and fulfilling orders of over 19,200 geographically mapped retailers at a pan-India level as on December 31, 2021.

    2. Out of 19,200 Retailers; 11,300 retailers are supported by 152 employees of the company. And, rest 7900 retailers are supported by call centre facility of the company.

    3. To engage the retailers, they have introduced free health insurance coverage to its distributors and retailers and have introduced an innovative scheme, namely, Sobhagya Lakshmi Yojna, to incentivize retailers through which they purchase electronic gold bonds and credit these to retailer accounts linked to their wife or daughter.

    4. Campus has introduced the Financing option. Under which, the Campus gets its payment directly from banks and distributors gets working capital loans. Currently, 51 distributors are under this plan but company is thinking of bringing all distributor under this scheme.

    5. Campus with the above financing method has reduced its receivables days from 110 in FY19 to 44 days in FY21.

    6. They also have an extensive online sales presence through third party pure play marketplaces, third-175 party managed marketplaces and online-to-offline B2B platforms such as Flipkart, Myntra, Fynd and Udaan among others as well as its own e-commerce website. They have sold more than 7.00 million pairs through online channels since Fiscal 2019 up to December 31, 2021.

    Sports and Leisure Shoe Market of India has total addressable market of 9000 Crores…

    1. Shoes with the price tag of less 1000 = 48% ….. Players like Bata, Relaxo and Liberty are competitors here.

    2. Shoes with the price tag between 1000 to 1500 = 16%…..Players like Adidas, Bata, and Liberty are competitors.

    3. Shoes with the price tag between 1500 to 3000 = 24%……..Players Like Nika, Puma, Adidas, Reebok, and Liberty are competitors..

    4. Shoes with the price tag >3000 = 13%……..Players like Nike, Puma and Adidas are competitors.

    Campus IPO

    1. Total Outstanding Shares = 304,326,004
    2. Expected IPO Price = 290-300
    3. Mcap = 8816 to 9000 Crores..
    4. EPS(FY21) = 0.88
    5. P/E = 329x

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