Leading sports & athleisure footwear manufacturer Campus Activewear Ltd has launched its three-day initial public offering. In this article, we analyse the company and its IPO.

Company Profile – Campus Activewear Ltd

Campus Activewear Ltd (CAL) is the largest sports and athleisure footwear brand in India in terms of value and volume as of FY21. Incorporated in 2005, the company manufactures and distributes a wide range of running shoes, walking shoes, casual shoes, floaters, slippers, flip-flops, and sandals. It offers multiple choices across styles and colour palettes. Their products target different price points, geographical locations, and demographics. As of Dec 31, 2021 (Q3 FY21), CAL sold 1,433 active styles of footwear for men, 241 styles for women, and 485 styles for children.

Interestingly, CAL’s products cover 85% of the addressable market of shoes with a price range of Rs 500-3,500 a pair. It sold 1.3 crore pairs in FY21 and 1.36 crore pairs during the nine months ended Dec 2021

The company owns and operates five manufacturing facilities across India, with an installed annual capacity of 2.88 crore pairs as of Q3 FY21. It has strong in-house manufacturing and assembling capabilities. CAL’s retail operations are carried out through offline stores and online channels (Flipkart, Myntra). They have a network of over 425 distributors and ~19,200 retailers across 664 cities in India

CAL secured a ~17% market share in the branded sports & athleisure (S&A) footwear industry in India in the financial year 2020-21 (FY21). The company aims to emerge as the most preferred sports and athleisure brand in India and touch the daily active lifestyle of every citizen. 

About the IPO

Campus Activewear Ltd’s public issue opens on April 26 and closes on April 28. The company has fixed Rs 278-292 per share as the price band for the IPO.

The IPO is entirely an offer for sale (OFS) of 4.79 crore equity shares by promoters and early investors, aggregating to Rs 1,400.14 crore. Individual investors can bid for a minimum of 51 equity shares (1 lot) and in multiples of 51 shares thereafter. You will need a minimum of Rs 14,892 (at the cut-off price) to apply for this IPO. The maximum number of shares that can be applied by a retail investor is 663 equity shares (13 lots).

The primary objective of the IPO is to provide an exit strategy (or liquidity) for CAL’s promoters. The company aims to achieve the benefits of listing the equity shares on NSE and BSE. The total promoter holding in Campus Activewear will decline from 78.21% to 74.1% post the IPO.

Financial Performance

Total Assets505.55719.22684.75
Total Income596.69734.11715.08
Profit After Tax38.662.3626.86
(Values in Rs crore)

Campus Activewear Ltd posted a 57% year-on-year (YoY) decline in net profit to Rs 26.86 in FY21. Its revenue declined 2.6% YoY to Rs 715.08 crore during the same period. The temporary shutdown of CAL’s manufacturing facilities during the Covid-19 pandemic adversely affected its gross margins. It incurred higher staff welfare with payments during a period with no production and for nearly five months.

However, the company posted impressive results for the nine months ended December 2021 (9M FY22). They reported a 403% YoY jump in net profit to Rs 84.80 crore, while revenue grew 93% YoY to Rs 841.8 crore. EBITDA surged 204% YoY to Rs 165.2 crore in 9M FY22. The average selling price per pair came higher at Rs 615 during the same period, compared to Rs 533 in 9M FY21. Their total borrowings stood at Rs 174.1 crore as of December.

CAL is back on track and ready for bright prospects with rising demands for its products in Tier-1 and Tier-2 cities.  

Risk Factors

  • Campus Activewear Ltd is reliant on its trade distribution and direct-to-consumer (D2C) channels for a majority of its sales. Any disruptions in the operations of these channels or the inability to expand/grow them may adversely affect sales and cash flows.
  • The sports and athleisure footwear industry is extremely competitive. The failure to compete effectively or develop successful products will affect CAL’s business and financial condition.
  • The company’s sales will be severely affected if they are unable to anticipate popular trends and consumer preferences.
  • CAL often experiences moderate fluctuations in its average selling price (ASP) based on seasonality. Historically, revenues in the first and second quarters have been lower when compared to those in the third and fourth quarters.
  • Any disruptions in warehousing and logistics will severely impact the company’s overall business.
  • Pricing pressure from customers could affect gross margin, profitability, and the ability to increase prices.

IPO Details in a Nutshell

IPO DateApril 26, 2022 – April 28, 2022
Issue TypeBook Built Issue IPO
Face ValueRs 5 per equity share
IPO PriceRs 278 to Rs 292 per equity share
Lot Size51 shares (1 lot)
Issue SizeAggregating up to Rs 1,400.14 crore
Offer for Sale (goes to promoters)Aggregating up to Rs 1,400.14 crore
Listing AtNSE, BSE

The book-running lead managers of the public issue are JM Financial, BofA Securities, CLSA India, and Kotak Mahindra Capital. CAL filed the Red Herring Prospectus (RHP) for its IPO on April 18. You can read it here. Out of the total offer, 50% is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors.


According to a Technopak report, the sports & athleisure (S&A) footwear market is expected to grow at a CAGR of 21% to Rs 22,000 crore! Many are now focusing on improving their general health and well-being. Campus Activewear’s products cover a large portion of our country’s S&A footwear market at various price points. The company’s in-house manufacturing and assembly capabilities allow them to ensure all-round availability and quality of products.  

However, the market is dominated by international brands like Nike, Addidas, Puma, and much more. CAL also faces competition from Indian brands such as Bata India, Relaxo Footwear, Metro Brands, etc. It will be difficult for the company to grow and expand in any pricing segment of the S&A footwear market.

Source: Campus Activewear RHP

CAL’s IPO shares are trading at a premium of Rs 100 in the grey market. So far, the portion reserved for NIIs has been subscribed 3.37 times and that of retail investors 3.2 times. As always, consider the risks associated with the company and come to your own conclusion.

What are your views on Campus Activewear Ltd’s IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.