Shares of Campus Activewear made a strong stock market debut on Monday with the scrip listing at ₹360 apiece on the NSE, a premium of over 23% as compared to its IPO issue price of ₹292 per share. On BSE, Campus Activewear shares started trading at ₹355.
“The company’s good listing during such a volatile market highlights the inherent strength of the company’s business and fundamentals. The company has a huge runway of growth and the long-term prospects are good. Those who applied for listing gains can maintain a stop loss of Rs. 300. We recommend this stock for the long term to both existing and new investors,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The initial public offer (IPO) of athleisure footwear company Campus Activewear was subscribed 51.75 times on the last day of subscription on April 28, mainly helped by strong interest from institutional buyers.
The IPO was entirely an Offer for Sale (OFS) of up to 4,79,50,000 equity shares. Those offering shares in the OFS include promoters Hari Krishna Agarwal and Nikhil Aggarwal and existing shareholders TPG Growth III SF Pte Ltd, QRG Enterprises Ltd, Rajiv Goel and Rajesh Kumar Gupta.
The price range for the initial share sale was at ₹278-292 per share. Campus Activewear garnered a little over ₹418 crore from anchor investors ahead of its issue. JM Financial, BofA Securities India, CLSA India and Kotak Mahindra Capital Company were the managers to the public offer.
Campus Activewear introduced the brand ‘Campus’ in 2005 and offers a diverse product portfolio for the entire family. As of fiscal year 2021, the brand has about 17% of market share in the branded sports and athleisure footwear industry in India by value.