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Campus Activewear is ready to raise $250 million through its IPO

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Keeping on with the IPO trends, Campus Activewear is also planning to raise an amount of Rs.1800 crores ($ 250 million) through its Initial Public Offering(IPO). The company is planning to submit its draft red herring prospectus (DRHP), on Friday, according to sources.

The company is also planning to externally sell around 16% stakes through a secondary route. The equation at work is -existing investor TPG will sell about 10% stake, another investor QRG will sell 2 % and promoters will sell about another 4 % stake. Kotak Mahindra, JM Financial, Bank of America and CLSA are the lead managers for the IPO. 

Overall, the footwear market in India is around Rs 60,000 crores of which sports and leisure wear category contributes Rs 10,000 crores. Campus holds a market share of 15-20% in India, and Reebok is on the top of the list with a share of around 45%.

HK Aggarwal founded the ‘Action’ brand in 1983 and entered the casual wear segment and then in 1997 he launched Campus brand. The company has reported a revenue of Rs.718.2 crores for FY’21  as compared to Rs.136.3 crores in FY’20. And, the company is strengthening its presence in the market by opening physical stores and also its online presence in the market.