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Campus Activewear files DRHP for IPO

Campus Activewear files DRHP for IPO 1

Campus Shoes is the largest sports and athleisure footwear brand in India in terms of value and volume in Fiscal 2021. Brand “CAMPUS” was introduced in 2005 and the company is a lifestyle-oriented sports and athleisure footwear company that offers a diverse product portfolio for the entire family.

Campus Activewear Ltd.has filed an offer document for an Initial public offering (IPO) of up to 51 million (5.1 crore) equity shares of face value Rs. 5 through a 100% offer for sale (OFS).

The promoters of the company are Mr. Hari Krishan Agarwal and Mr. Nikhil Aggarwal. Marquee investors such as TPG Growth III SF Pte.Ltd. and QRG Enterprises Limited will be selling part of their shareholding in the company through the offer for sale.

While promoters of the company currently hold 78.21% of the total outstanding shareholding, TPG Growth and QRG Enterprises holds 17.19% and 3.86% of the total outstanding shareholding respectively. The balance of 0.74% is being held by individual shareholders and current employees.

The company’s strength in the Indian sports and athleisure footwear landscape is demonstrated on account of the following (Source: Technopak Report):

“Campus” is the fastest growing scaled sports and athleisure footwear brand (scaled brands being brands with over ₹ 2 billion of revenue in Fiscal 2019) in India over Fiscal 2019 to Fiscal 2021. It has sold more than 39 million pairs over Fiscal 2019 to Fiscal 2021 period.

The brand enjoys approximately 15% market share in the branded sports and athleisure footwear industry in India by value for Fiscal 2020, which increased to approximately 17% in Fiscal 2021.

Campus is one of the most relevant brands in this segment, covering more than 85% of the total addressable market for sports and athleisure footwear in India as of Fiscal 2021. It is one of the very few established Indian brands in a segment, which is primarily dominated by international brands.

Campus has installed capacity to manufacture 25.6 million pairs (2.56 crore) annually. It has a pan-India trade distribution network covering over 400 distributors directly servicing and fulfilling orders of over 18,200 geographically mapped retailers.

Campus’ expansive Direct-to-Consumer network contributes more than 38% of total revenues in the six month ended September 30, 2021, with e-commerce sales in excess of 30% of the total revenue from operations during the same period.

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. (Source: Technopak Report).

The company specific industry segment of sports and athleisure footwear is highly under penetrated. This is evidenced by the extremely low footwear penetration 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, and 25% between Fiscals 2021 and 2025. (Source: Technopak Report).

BofA Securities India Limited, JM Financial, CLSA India and Kotak Mahindra Capital Company are the investment bankers for the IPO.

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