Should you invest in Campus Activewear Limited IPO?

Campus Activewear Limited incorporated on September 24, 2008, is the largest sports and athleisure footwear brand in India in terms of value and volume in Fiscal 2021 and it is also the fastest-growing scaled sports and athleisure footwear brand (scaled brands being brands with over Rs. 2 billion of revenue in Fiscal 2019) in India over Fiscal 2019 to Fiscal 2021. The company introduced its brand ‘CAMPUS’ in 2005 and is a lifestyle-oriented sport and athleisure footwear company that offers a diverse product portfolio for the entire family.

Campus Activewear IPO review

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Campus Activewear Limited has an expansive pan-India trade distribution network, with over 400 distributors in 28 states and 625 cities. The company also has 18,200 retailers across India. The company owns and operates five manufacturing facilities across India with an installed annual capacity for assembly of 28.80 million pairs as of December 31, 2021.

Promoters & Shareholding:

Hari Krishan Agarwal and Nikhil Aggarwal are the company promoters. 

Pre Issue Sahre Holding78.21%
Post Issue Share Holding74.10

Public Issue Details:

Offer for sale: Issue of approx. 47,950,000 equity shares of Rs. 5 aggregating up to Rs. 1400.14 Cr.

Total IPO Size: Rs. 1400.14 Cr.

Price band: Rs. 278 – Rs. 292.

Objective: To achieve the benefits of listing the equity shares on the stock exchanges and to carry out the offer for sale.

Bid qty: minimum of 51 shares (1 lot) for Rs. 14,892 and maximum of 13 lots.

Offer period: 26th April 2022 – 28th April 2022.

Date of listing: 9th May 2022.

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∙ The largest sports and athleisure footwear brand in India.

∙ The fastest-growing scaled sports and athleisure footwear brand.

∙ Difficult to replicate integrated manufacturing capabilities supported by a robust supply chain.

∙ Robust Omni-channel sales and distribution network with pan-India presence and move to premium category.

∙ Professional and experienced management team.

∙ Strong brand recognition, innovative branding, and marketing approach.


∙ Reliant on its trade distribution and our direct-to-consumer channels for a majority of our sales.

∙ COVID-19 pandemic has had and may continue to have certain adverse effects on its business.

∙ The sports and athleisure footwear industry is highly competitive.

∙ The company relies on third parties to manufacture slippers.

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Subscribe or avoid?

Sectorial outlook – The retail market in India was valued at $ 796 billion in FY 2020 and is expected to grow at a CAGR of 6.23% to reach $ 1,077 billion by FY 2025. The Indian footwear retail market is expected to grow at a CAGR of 8% from Fiscal 2020 to Fiscal 2025, and 21.6% from Fiscal 2021 to Fiscal 2025, being one of the fastest-growing discretionary categories from Fiscal 2021 to Fiscal 2025. The segment of sports and athleisure footwear is highly under penetrated per capita as compared to developed economies and is expected to be the fastest-growing segment, with a CAGR of 14% between Fiscals 2020 and 2025. Some of the factors that will contribute to its growth are growing incomes, increasing working-age population, shrinking household size, urbanization, heightened exposure to the internet, and the meteoric rise of e-commerce.

The financials (revenue and net profit) are shown in the graph below:

Valuation – For the last 3 years average EPS is Rs. 1.34 and the P/E is around 218x on the upper price band of Rs. 292. The EPS for FY21 is Rs. 0.88 and the P/E is around 332x and if we annualize FY22 earnings then the asking price is at a P/E of 78x. Bata India (PE 354) and Relaxo (PE 101) are their listed peers as per the RHP. The company P/E is between 78x and 332x, and looking at the industry average P/E, the listing seems to be fully priced. Recommendation – Campus is India’s largest and fastest-growing sports and athleisure footwear brand and it has been able to maintain a good margin even during the covid lockdowns and looking at the underpenetrated sports and athleisure footwear segment in India when compared to other developed economies, the company seems to have great potential. After considering all the factors we would recommend investors to “Subscribe” to this IPO from a medium to long-term perspective.


This article should not be construed as investment advice, please consult your Investment Adviser before making any sound investment decision. If you do not have one visit

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