Campus Activewear IPO subscribed 1.24x on Day-1 on retail interest

The retail portion was subscribed 1.9 times, HNI 1.32 times and institutional investor portion was subscribed 9%

Campus Activewear’s initial public offering (IPO) was subscribed 1.24 times on Tuesday, the first day of the issue. The retail portion of the issue was subscribed 1.9 times, high networth individual (HNI) portion was subscribed 1.32 times and institutional investor portion was subscribed 9 per cent.

A day earlier, the company had allotted shares worth Rs 418.3 crore to 32 anchor investors at Rs 292 per share, the upper end of the price band. Abu Dhabi Investment Authority, Fidelity, Nomura, Invesco and Goldman Sachs were some of the investors that got allotment in the anchor category. Among domestic funds HDFC MF, ICICI Prudential MF and Franklin India MF got an allotment.

Campus Activewear’s Rs 1,400-crore IPO is entirely a secondary share sale by existing shareholders including private equity firm TPG. At the top-end of the price band, Campus Activewear will have a market cap of Rs 8,886 crore.

“Considering the trailing 12-month (December 21) earnings per share of Rs 3.12, the company is going to list at a price-to-earnings (P/E) multiple of 93.7 times whereas its peers Relaxo Footwear and Bata India are trading at P/E of 103x and 357x. We assign “Subscribe” rating to this IPO as the company is the largest sports and athleisure footwear brand having 17 per cent market share in India by value. Also, it is available at reasonable valuation as compared to its peers,” Marwadi Financial Services said in a note.