About 4 bankers – Kotak Mahindra, JM Financial, Bank of America Merrill Lynch and CLSA have been hired to run the IPO process. DRHP will be filed by October this month.
Existing investors will dilute about 12-15% stake while 2-3% stake to be sold out for primary capital, said one of the sources above mentioned.
Besides private equity fund TPG Growth, the family office of the promoters of Havells Group– QRG Enterprises Limited also holds a minority stake in Campus. Both hold together about 25% stake in Campus, acquired in 2017 at a valuation of Rs6000 crore.
Last month, ET first reported on Campus Activewear’s plans to float a Rs2000-crore IPO.
“We are considering listing the company in the medium to long term and it’s honestly too early to comment on any specifics on valuation, size and structure,” Nikhil Agarwal, CEO, Campus Activewear had told ET last month. Spokespersons with TPG, QRG declined to comment.
In 1983, HK Agarwal founded the ‘Action’ brand, a household name in the casual and sports footwear segment in India. Later in 1997, the Campus brand was launched.
The company reported a revenue of Rs 718.2 crore in FY21 compared to Rs 732 crore a year ago. EBITDA of the company stood at Rs 117 crore, compared to Rs 136.3 crore a year ago.
Campus Group’s revenue grew at a CAGR of 15% over FY15-FY21. The revenues remain prone to seasonality with the majority of sales generated over August-December; the winter season in north India, according to India Ratings.
Campus strengthened its brand presence during FY21 by increasing exclusive brand outlets as well as expanding its presence in the online segment. The brand already benefits from a healthy presence in north India and is now focused on expanding in other regions as well. During FY21, CAPL expanded its distribution network to 350 distributors.
Major footwear brands in India are Bata India, Relaxo Footwears Limited, Liberty Shoes, Khadim India, Nike, Adidas AG and Puma.
Stocks of the footwear companies witnessed a tremendous growth in the last 1 year. Shares of Bata appreciated 25 percent, Liberty gained 23 percent, while Relaxo surged 87 percent and Khadim India appreciated 165 percent compared to a 43 percent spike in benchmark Sensex during the last 1 year.
Overall footwear market in India is Rs60,000 crore, of which sports and leisure shoes are about Rs10,000 crore. Campus holds about 15-20% market share in India, while Reebok is the leader with 45% market share.
Khadim India, the Kolkata-based footwear maker backed by Fairwinds private equity (formerly Reliance PE), was the latest footwear company to get listed. Listed in 2017, Khadim India raised about Rs543 crore.
India is the second largest producer of footwear globally, accounting for 13 per cent of the global footwear production, next to China, which dominates the global footwear industry accounting for close to 67 per cent of the market, according to the Council for Footwear, Leather & Accessories.
However, the average per capita footwear consumption in India continues to be low at 1.66 pair per annum in comparison to the global average consumption of 3 pair per annum and developed countries average of 6-7 pair per annum.
