27 Apr , 2022 By : Kanchan Joshi
Campus Activewear IPO (Initial Public Offering) opened for subscription on Tuesday and after day one of bidding, the public issue worth Rs1400 crore has been subscribed 1.24 times whereas its retail portion has been subscribed 1.88 times. Taking cue from strong response to the public offer, grey market has gone further bullish on Campus Activewear IPO. According to market observers, Campus Activewear share price is trading at a premium of Rs100 in grey market today.
Campus Activewear IPO GMP
Market observers said that Campus Activewear IPO GMP (grey market premium) today is Rs100, which is Rs8 higher from its Tuesday's grey market premium of Rs72. They said that such a rise in Campus Activewear IPO GMP today can be attributed to the strong response to the public issue and trend reversal in the secondary market. They said that much will depend on the market sentiments as further upside momentum may further boost the grey market sentiment and bring some more moolah in the IPO.
What this Campus Activewear IPO GMP mean
According to market observers, Campus Activewear IPO GMP today is Rs100 that means grey market is expecting Campus Activewear IPO listing around Rs392 ( Rs292 Rs100), which is around 35 per cent higher from the Campus Activewear IPO price band of Rs278 to Rs292.
However, stock market experts said that grey market premium is an unofficial data which has nothing to do with the financials of the company. One should decided upon investing in an IPO after going through the balance sheet of the company because it provides concrete fundamentals of the company.
Campus Activewear IPO: Buy or not?
Giving 'buy' tag to Campus Activewear IPO, Anand Rathi research report says, "We reckon operations in a fast-growing segment, a high and rising market share and strong financials are positives," adding, ""Revenue grew ~23% in FY20. The EBITDA and PAT margins ranged respectively from ~17% to 18% and ~7% to 9% over FY19-20. 9M FY22 revenue stood at Rs8.4bn and EBITDA margin was 19.4%.The RoE/RoCE were 21.9%/22.7%. FY21 net debt was Rs1bn."
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