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Salient features of the FPO:

• Homegrown sports & athleisure focused footwear manufacturer, Campus Activewear Ltd. (CAL), is coming up with an IPO to raise Rs. 1,400cr, which opens on 26th Apr. and closes on 28th Apr. 2022. The price band is Rs. 278 - 292 per share.

• The IPO comprises only the OFS portion, thus the company will not receive any proceeds from the issue.

Key competitive strengths:

India’s largest sports & athleisure footwear brand and fastest growing scaled sports & athleisure footwear brand with a robust product portfolio across the demand spectrum

• Sustained focus on design & product innovation facilitating access to the latest global trends & styles through its fashion forward approach • Difficult to replicate integrated manufacturing capabilities supported by robust supply chain

• Robust omnichannel sales & distribution network with pan-India presence and move to premium category

• Strong brand recognition, innovative branding and marketing approach • Experienced management team

Risk and concerns:

• General economic slowdown

• Inability to attract consumers or respond to market trends

• Slower expansion of the store network

• Unfavorable revenue-mix • Volatility in the key raw material prices

• Difficulty in maintaining the working capital

• Competition

Below are the key highlights of the company:

• The domestic footwear retail market is estimated at Rs. 72,000cr and Rs. 48,000cr in FY20 and FY21, respectively. In FY21, the footwear market was severely impacted mainly by the Covid-19 pandemic induced lockdown and restrictions. The market is projected to grow at 8% CAGR over FY20-25 and 21.6% CAGR over FY21-25 to reach a size of Rs. 1.05lakh cr. The sports & athleisure segment (around Rs. 17,000cr in FY20) of the footwear market is highly under penetrated as compared to developed economies and thus is expected to grow at 14% CAGR between FY20-25.

• Indian sports & athleisure footwear market is dominated by international players like Adidas, Puma, Nike etc. CAL is the only homegrown sports & athleisure footwear company driving almost 90% of the business from this category. It is primarily engaged in the manufacturing, distribution and sales of sports & athleisure footwear products. The company’s products are sold under the “Campus” brand and covered more than 85% of the addressable sports & athleisure footwear market in FY21. In terms of value, it was one of the top three domestic sports & athleisure footwear brands during FY19-20, and the largest in FY21.

• In FY20, CAL had around 15% value share in the domestic branded sports & athleisure footwear retail market, which further increased to almost 17% in FY21. In terms of volume, the company was the largest sports & athleisure footwear brand in India, with a market share of 21-24% in FY20, which further increased to 25-28% in FY21.

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