Campus Activewear IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 15th December 2022 - 09:50 am

The Rs.1,400.14 crore IPO of Campus Activewear Ltd Solutions, consisting entirely of an offer for sale (OFS) of shares worth of Rs.1,400.14 crore, saw strong retail response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Campus Activewear IPO was subscribed 1.24X overall, with good demand traction seen in the retail segment followed by some buying interest from the HNI / NII segment. The initial public offer (IPO) will close for subscription on Thursday, 28th April 2022.

As of close of 26th April 2022, out of the 336.25 lakh shares on offer in the IPO (net of anchor allocation), Campus Activewear Ltd saw bids for 418.33 lakh shares. This implies an overall subscription of 1.24X of the issue size.

The granular break-up of subscriptions was dominated by retail investors followed by the HNI / NII investors with insignificant demand seen from QIBs. Normally, it is only on the last day of bidding, the NII/HNI bids and the QIB bids build up substantial momentum. We should get a clearer picture by the end of third day of subscription only.

Campus Activewear Ltd IPO Subscription Day 1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.09 Times
Non Institutional Investors (NII)	1.32 Times
Retail Individuals	1.88 Times
Employees	0.68 Times
Overall	1.24 times

QIB Portion

On 25th April, Campus Activewear Ltd completed an anchor placement of shares to anchor investors. A total of 1,43,25,000 shares of Campus Activewear Ltd Solutions were allocated to 32 anchor investors at the upper price band of Rs.292 per share. Here are the top 6 anchor investors in the IPO of Campus Activewear.

Anchor Investor	No. of Shares	% of Anchor Portion	Value Allocated
Abu Dhabi Investment Authority	917,898	6.41%	Rs.26.80 crore
Fidelity India Focus Fund	917,898	6.41%	Rs.26.80 crore
Nomura India Mother Fund	917,898	6.41%	Rs.26.80 crore
East Spring Investments	917,898	6.41%	Rs.26.80 crore
Ashoka India Equity Fund	917,898	6.41%	Rs.26.80 crore
HDFC Balanced Advantage Fund	917,898	6.41%	Rs.26.80 crore

The total anchor allocation of Rs.418.29 crore was spread across 32 investors. The total anchor allocation of 143.25 lakh shares was done at the upper price band of Rs.292. The total anchor allocation amounted to 29.87% of the total issue size. Out of the total anchor portion, 39.18% was made to 15 mutual fund schemes spread across 8 AMCs.

The QIB portion (net of anchor allocation as explained above) has a residual quota of 95.50 lakh shares of which it has got bids for 8.38 lakh shares at the close of Day-1, implying 0.09 times or 9% subscription for QIBs at the close of Day-1. However, QIB bids typically get bunched on the last day, although we have to wait and see how the response mechanism of QIBs build up in the next 2 days of the IPO.

The anchor demand was broad and robust across different classes of institutions. It must also be remembered that the QIB allocation is 50% in the IPO while it is 15% for HNI / NIIs and 35% for retail.

HNI / NII Portion

The HNI portion got subscribed 1.32X (getting applications for 94.22 lakh shares against the quota of 71.63 lakh shares). This is a relatively good response at the close of Day-1 with most of the response coming from HNI individuals. However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a relatively strong 1.88X at the close of Day-1 and that could be attributed to the fact that Campus is a popular retail brand in India. Retail interest is normally seen in the first 2 days, so the eventual interest level looks to be building up for Day-2 and partially on Day-3.

For retail investors; out of the 167.13 lakh shares on offer, valid bids were received for 314.37 lakh shares, which included bids for 254.20 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.278-Rs.292) and will close for subscription on 28th April 2022.

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