Campus Activewear IPO (Initial Public Offering) is going to open on 26th April 2022 and it will remain open for sub scribers till 28th April 2022. However, grey market has already started signaling in regard to the public issue worth ₹1400.14 crore. As per the market observers, Campus Activewear share price is quoting at a premium of ₹60 in grey market today. They said that Campus Activewear IPO GMP has risen from ₹53 and it indicates that grey market is expecting strong response from the public issue.
Campus Activewear IPO GMP
Market observers said that Campus Activewear IPO GMP (grey market premium) today is ₹60, which is ₹7 higher from its yesterday’s grey market premium of ₹53. Observers went on to add that grey market premium of Campus Activewear IPO has been oscillating around 18 to 20 per cent for last three days that signals strong response for the IPO when it opens. They said that despite weakness in secondary markets, grey market sentiment in regard to Campus Activewear IPO has remained more or less same that reflects more spike in Campus Activewear IPO GMP once there is trend reversal in stock market.
What this GMP mean?
As per market observers, Campus Activewear IPO GMP today is ₹60, which means grey market is expecting this IPO to list around ₹352 ( ₹292 + ₹60), around 20 per cent higher from its upper price band of ₹292 per equity share. They said that Campus Activewear IP grey market premium being at such a higher levels ahead of the subscription opening is a good sign. This may reflect in strong subscription of the IPO when it opens on 26th April.
However, stock market experts advised investors to rely on the company’s balance sheet instead of grey market sentiments. They said that grey market premium of a public offer is an unofficial data that signals expected premium from the IPO on a particular date. It keeps on changing and it has nothing to do with the company’s balance sheet. It is company’s balance sheet that gives concrete idea about the fundamentals of the company.
Speaking on the actual fundamentals of Campus Activewear Limited; Saurabh Joshi, Research Analyst at Marwadi Financial Services said, “Considering the TTM (Dec 21) EPS of ₹3.12 on a post-issue basis, the company is going to list at a P/E of 93.72x with a market cap of Rs.88,863 mn whereas its peers namely Relaxo Footwear and Bata India Ltd are trading at PE of 103x and 357x. We assign a “Subscribe” rating to this IPO as the company is the largest sports and athleisure footwear brand having 17% market share in India by value. Also, it is available at a reasonable valuation as compared to its peers.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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