Campus Activewear Limited, an omnichannel sports and athleisure footwear brand, said that it will merge its subsidiary Campus AI Private Limited with the company.
“Campus Activewear Limited has announced the approval of the merger of its wholly-owned subsidiary Campus AI Private Limited with the Company by National Company Law Tribunal, New Delhi (NCLT) vide its order dated 11th August 2022,” the company stated in a BSE filing.
It further said that the merger of its wholly-owned subsidiary has no impact on the Revenue and EBIDTA of the consolidated entity.
“Campus Activewear is expected to benefit from the merger mirroring the management’s quest for creating shareholder value. It adds economies of scales, cost rationalisation, simplified corporate structure and streamlining business operations leading to enhanced overall business capabilities. Campus Activewear aspires to be an integral part of every Indian and continues to offer unique footwear experience in the sports and athleisure segment raising India’s fitness quotient,” said HK Agarwal, Chairman & Managing Director in a statement.
Last week, brokerage Motilal Oswal Ltd (MOSL) initiated coverage Campus activewear with a buy call for a target price of Rs 640.
Campus has created the right in-house capability to tap the large-scale opportunity in the mass sports footwear market and its sharp pricing and deep distribution network have helped leverage growth, said MOSL in a report.
CAL owns and operates 5 manufacturing facilities across India with an installed annual capacity for assembly of 28.80 million pairs as on March 31, 2022. The Company has over 425 distributors directly servicing and fulfilling orders of over 20,000 geographically mapped retailers in more than 650 cities at a pan-India level as on June 30, 2022. Of these approximately 20,000 retailers, the internal sales force of 151 employees has direct field coverage of approximately 11,500 retailers as on June 30, 2022.
