10 May 2022, Mumbai:
Campus Activewear’s latest Rs 1,400-crore initial public offering (IPO) was subscribed 51.75 times. Response to the IPO exceeded analysts’ expectations given the challenging market conditions.
The IPO was entirely a secondary share sale by existing shareholders including private equity firm TPG.
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One of India's largest sports and athleisure footwear brands, Campus Activewear manufactures and distributes a variety of footwear including running Shoes, Walking Shoes, Casual Shoes, floaters, slippers, flip flops, and sandals, in multiple colors, styles and at affordable prices.
The brand sells its products through online platforms and offline stores.
Analysts at ICICI Securities believe, that to sustain premium valuations the brand would have to replicate a similar growth trajectory.
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The brokerage firm’s 'subscribe' rating would enable it to deliver sustainable profitable growth, they add.
However, analysts at HDFC Securities say, the volatile financial parameters of Campus in the past do not guarantee any improvement in the future.
The brand relies on trade distribution and direct-to-consumer channels for the majority of its sales.
Any disruptions to operations of these channels or the brand’s limited ability to expand and grow this channel may adversely affect its sales, cash flows, and profitability, the brokerage firm adds.
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