Studds Accessories to Raise ₹455 Crore via IPO Opening on October 30

The India-based helmet maker, Studds Accessories Ltd, will be coming out in the capital markets to launch its first people’s initial public offering (IPO) on October 30, which will be a major development in the history of the home-made safety-gear brand that has been identified with two-wheeler helmets since decades.

This public issue will be used to raise 455 crore by the company, all of which will be an entirely an Offer for Sale (OFS) by existing shareholders. That is to say that no new shares will be given out, and the purchase money will be passed on to the selling shareholders and not the company itself.

Issue Details

The draft prospectus indicates that the IPO is priced at ₹ 557,585 per share, and the IPO will open on October 30 and close on November 3. The anchor investor request will be open a day before, on October 29, whereas the listing will occur on November 7.

The entire issue includes 77.86 lakh shares of equity, and on the high side of the price range, the business is valued at approximately 2300 crore. Early signs of a trend in the market have recorded an early grey market premium (GMP) of about 85 per share, implying healthy investor interest before the opening.

About Studds Accessories

Studds Accessories Ltd was established in the year 1983 and has risen to become the largest manufacturer of helmets in the world with exports to over 40 countries in Europe, Asia and Latin America. It has an excellent portfolio of two-wheeler helmets, riding products, gloves, jackets, and other motorcycle accessories, with its well-known two brands of helmets, which are Studds and SMK.

The company has four state-of-the-art facilities in Haryana that include in-house testing and research facilities. Its stable emphasis on innovation and adherence to international safety standards has established it as a stable brand in the local and international markets.

Financial Performance

Studds has shown a stable financial growth over the past years. According to its filings, the company increased its revenues through operations by 20 per cent in FY23 and by almost 20 percent in FY24 and by another 20 percent in FY25.

Profit after tax (PAT) also expanded by 15.9 times between FY23 and FY24, and almost 17.9 times between FY24 and FY25, which shows that the company is capable of maintaining its margins even when the costs of inputs are fluctuating.

Nonetheless, the company is still largely dependent on its core product, two-wheeler helmets, which have been contributing nearly 90 per cent of the total income.

Industry Outlook

The Indian market, as the largest two-wheeler market in the world, continues to use helmets in a growing number due to the growing awareness among riders because of the increasing road safety regulations. Demand has also been enhanced by the mandatory helmet laws and increased implementation in states by the government.

Researchers are of the view that Studds, having a high brand recall and production capacity, is in a position to enjoy these tailwinds. Additionally, an increase in disposable income levels and the transition to high-end motorcycle accessories may assist the company to increase its product range that are of higher margins, under the SMK brand.

Risks and Challenges

Although the growth trend of the company seems to be strong, some of its challenges still remain. The OFS structure will not inject new funds into the company to expand and reduce debt, as it will be owned by Studds. Its over-reliance on the two-wheeler segment also exposes it to cyclical declines in automobile sales.

Also, the rivalry in the helmet and accessories industry is also growing as local and foreign brands compete to capture the market. Differentiation and brand loyalty of the products will play a significant role in continuing the growth.

Conclusion

Investor confidence in the two-wheeler ecosystem in India and the increasing interest in niche manufacturing companies that have international prospects are reflected by the next IPO of Studds Accessories. Although the offer could be mostly an escape strategy of existing shareholders, a listing on the exchanges will likely introduce more transparency, liquidity and visibility of the brand.

To investors, the IPO will mean an opportunity to join the ride of a market leader in an expanding industry of safety gear, although it will be important to carefully consider valuation, business concentration, and long-term prospects before picking up the phone.