Campus Activewear stock soars 29% on debut, ends the day with 27% gains

The stock ended at Rs 371.7, with a gain of Rs 79.7 over the issue price of Rs 292 per share

Shares of Campus Activewear gained more than 27 per cent during their stock market debut on Monday. The stock ended at Rs 371.7, with a gain of Rs 79.7, or 27.3, over the issue price of Rs 292 per share. The strong listing follows huge oversubscription for its IPO. Campus Activewear’s maiden share sale was 50 times beyond the shares on offer. The institutional investor portion of the IPO was subscribed 152 times and the wealthy investor portion was subscribed 22.25 times. The retail investors' portion was subscribed 7.7 times. The anchor portion of the IPO saw participation by investors such as Abu Dhabi Investment Authority, Fidelity, Nomura, Invesco and Goldman Sachs Campus Activewear’s Rs 1,400-crore IPO was entirely a secondary share sale by existing shareholders, which included private equity firm TPG. At the last close, Campus Activewear had a market value of over Rs 11,300 crore. The company is India’s sports and athleisure footwear brand with a 17 per cent market share in value terms.

The company’s earnings per share on a trailing 12-month basis ended December 2021 are around Rs 3.12 on a post-diluted basis. The stock currently trades at a price-to-earnings (P/E) multiple of nearly 120 times.  In an IPO note, Marwadi Financial Services had recommended ‘subscribe’ to the IPO citing favourable valuations compared to peers such as Relaxo Footwear and Bata India, which trade at a P/E of 103x and 357x, respectively.