CAMPUS ACTIVEWEAR IPO

IPO Details:

Price Band: 278-292

Cutoff Price: 292

About Company:

Campus Activewear is the largest sports and athleisure footwear brand in India in terms of value and volume in Fiscal 2021. The Company has introduced their brand ‘CAMPUS’ in 2005 and is a lifestyle-oriented sports and athleisure footwear company that offers a diverse product portfolio for the entire family. Company offer multiple choices across styles, color palettes, price points and an attractive product value proposition. Campus Activewear has roughly 17% market share in the branded sports and athleisure footwear industry in India by value for Fiscal 2021.

Financial Performance:

Revenue of the company is growing slowly and it declined may be because of pandemic. Company is profitable and cutoff price is at P/E of 78 which is very high.

Objects of the Issue:

The Net Proceeds from the Issue are proposed to be utilised in the following manner:

1. Offer for Sale

Competitors Comparison:

Considering listed companies that are in the same business, Campus Activewear seems to be highly overvalued based on the P/B ratio, but undervalued based on P/E ratio.

Grey Market Premium:

Our view: GMP of the IPO is decent but overall the company looks undervalued in terms of valuation. I will subscribe to this IPO only for Listing Gains.

Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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