Shares of Campus Activewear tumbled nearly 9% in early trade on Friday amid a block deal. While the buyers and sellers were not known immediately, reports suggest that U.S.-based alternative asset management firm TPG Global was planning to sell its entire 7.6% stake in the company through block deals today. The asset management firm was looking to sell 2,32,07,692 equity shares of the company at a floor price of ₹345 apiece, a discount of nearly 7% to Thursday’s closing price.
Extending its losing streak for the fourth straight session, Campus Activewear shares opened 4.9% lower at ₹351 against the previous closing price of ₹369.1 on the Bombay Stock Exchange (BSE). In the first two hours of trade so far, the largecap stock declined as much as 8.56% to ₹337.5, while the market capitalisation dropped to ₹10,420 crore. In the last four sessions, the stock has fallen 10% from ₹375.15 levels on March 20.
The Campus Activewear share price currently trades 47% lower than its all-time high marks of ₹640 touched on October 19, 2022. It hit its record low level of ₹296.85 on May 20, 2022. In the last six months, the stock has fallen 41%, while it shed nearly 16% in a month. On the year-to-date (YTD) basis, the counter has nosedived nearly 17%. The stock currently trades 15.4% higher than its IPO issue price of ₹292.
In September 2017, TPG Growth, the growth equity platform of TPG Global, and QRG, the family office of the promoters of Havells Group, had purchased a 20% stake in Campus Activewear. The asset management company had partially sold its stake in the company during the IPO in May last year.
Campus Activewear, one of the country’s largest sports and athleisure footwear brands, made a strong debut on Dalal Street on May 9, 2022. The footwear retailer raised ₹1,400 crore via initial public offering (IPO), which received robust demand from investors, especially from qualified institutional buyers. The company’s IPO, the first of fiscal 2022-23, was subscribed more than 51 times as it received bids for 1,74,02,02,110 equity shares, or 51.75 times, as against the issue size of 3,36,25,000 shares. The issue was completely an offer-for-sale (OFS) by existing promoters including Hari Krishan Agarwal and Nikhil Agarwal, as well as other investors like TPG Growth III SF Pte Ltd, Rajiv Goel, and Rajesh Kumar Gupta.
Ahead of the IPO, the company raised ₹418.29 crore from its anchor investors by issuing them 14,325,000 equity shares at ₹292 each. The marquee investors which participated in the pre-IPO round include Abu Dhabi Investment Authority, Fidelity Funds, Nomura, Societe Generale, BNP Paribas Arbitrage, and Goldman Sachs (Singapore) Pte.
For the December quarter of the current fiscal, the company reported 11.7% decline in consolidated net profit to ₹48.31 crore from ₹54.72 crore in Q3 FY22. However, revenue from operations rose 7.4% to ₹465.62 crore in Q3 FY23 as against ₹433.55 crore in the same period last year.
Launched in 2015, Campus holds a 17% share of the branded sports and athleisure footwear retail market in India by value as of FY21. Going forward, the company plans to focus on premiumisation across product segments with enhanced focus on women, children and kids.
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