IPO-related Campus Activewear online sales increase 37% in first nine months of FY22

Online sales of sports shoe maker Campus Activewear jumped around 400 crore, accounting for 37% of total sales in the nine months ending December 2021, mainly driven by shoppers in small towns, news agency PTI reported.

Campus Sportswear The 1,400 crore IPO will open for subscription on April 26, i.e. tomorrow and will remain open for auction until April 28.

Campus Activewear, which had filed the draft documents with the Sebi in December last year, is seeking to tap the public markets with a full offer to sell (SFO) of 5.1 crore shares by promoters and shareholders existing.

The promoters – Hari Krishna Agarwal and Nikhil Aggarwal – and investors such as TPG Growth III SF Pte Ltd and QRG Enterprises Ltd will offload their shares in the issue.

Currently, the promoters own 78.21% of the capital of the company, TPG Growth and QRG Enterprises own 17.19% and 3.86% of the capital respectively.

Campus Activewear launched the “Campus” brand in 2005 and is a lifestyle-focused athletic and leisure footwear company that offers a diverse product portfolio for the whole family.

The brand holds a market share of around 15% in the branded sports and leisure footwear industry in India by value in FY 2020 which increased to around 17% in FY 2021.

BofA Securities India Limited, JM Financial, CLSA India and Kotak Mahindra Capital Company have been appointed investment bankers to advise the company on the public offering.

According to market watchers, Campus Activewear IPO GMP (grey market premium) is today 85, greater than 60 on Sunday.

The massive growth in online sales even surprised us. While online sales were only 19 crore in FY19, it increased to 50 crore in FY20 and tripled to reach 150 crore in FY21 and climbed to around 400 crores in the first nine months of FY22. This represents up to 37% of our 1,118 crore in revenue over that period, Nikhil Agarwal, the company’s chief executive and son of founding chairman HK Agarwal, told PTI.

He also said that the company will continue to lead this sales channel and expects the share to increase further, in addition to pushing the women’s and children’s segment which currently only contributes to 250 crores.

On average, online sales provide the company with an additional operating margin of 500 basis points compared to traditional commerce, where the commission is around 35%.

He said they get nearly 50% of sales from the north followed by the east and west, and admitted that it’s low in the south.

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David A. Albanese