MUMBAI: Campus Activewear Ltd shares made a positive listing on the stock exchanges on Monday, despite a bearish market sentiment.
Shares of the athleisure footwear company made a healthy market debut and jumped nearly 30% against the issue price of Rs 292.
The stock listed at Rs 355, registering a premium of 21.57% against the issue price on the BSE. During the day, it zoomed 43% to Rs 417.70. It settled at Rs 378.60, higher by 29.65%.
At the NSE, the stock made its debut at Rs 360, a jump of 23.28% over the issue price. It ended at Rs 372.65, a gain of 27.61 per cent.
Its market valuation remained at Rs 11,521.78 crore on the BSE.
The initial public offer of Campus Activewear was subscribed 51.75 times last month with all investor categories oversubscribing their portion of the issue.
On listing, Campus Activewear has joined listed footwear peers such as Bata India, Relaxo Footwears, Khadim India, Liberty Shoes, Metro Brands and Mirza International.
“At the high of the issue price-band (Rs292), the stock is valued at ~66x FY20 EV/EBITDA and ~142x P/E. Footwear companies quote at an average EV/EBITDA of 35.7x/29.5x FY23e/FY24e and P/Es of 64x/51x,” Financial Express analysts at Anand Rathi said in a note.
Analysts at research and brokerage firm Motilal Oswal Financial Services were quoted by the business daily as having said that Campus Activewear with leading market share in India’s branded S&A footwear, is well placed to capture the highly underpenetrated and fast growing footwear segment in India. On 9MFY22 annualised EV/Sales basis Campus is valued at 8.1x and seems reasonable compared to ~10x for both Bata and Relaxo. Given Campus’ presence in niche S&A segment with pan-India omni-channel presence, along with strong financials, the research firm had suggested investors to subscribe to the IPO.
Campus Activewear introduced the brand ‘Campus’ in 2005 and offers a diverse product portfolio for the entire family.
