Posted on March 27, 2025, by Niftynews
Studds Accessories IPO 2025: Studds Accessories, a leading manufacturer of helmets, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). This marks the company’s second attempt to go public after its initial attempt nearly seven years ago. The IPO will be an Offer for Sale (OFS), with the promoter group and other shareholders selling a total of 77.9 lakh shares. Unlike other IPOs, the company will not raise funds directly from the issue as the proceeds will go to the selling shareholders.
What is the Focus of the Studds Accessories IPO 2025?
The Studds Accessories IPO is designed to offer 77.9 lakh shares to the public. Since this is an Offer for Sale, the company itself will not raise any funds from the sale, and the proceeds will be directed to the selling shareholders. This IPO allows investors to buy shares of Studds Accessories while providing liquidity to the current stakeholders.
About Studds Accessories
Studds Accessories designs, manufactures, and markets two-wheeler helmets and related accessories. The company operates under the Studds and SMK brands and is known for offering high-quality helmets. It also manufactures various two-wheeler accessories like gloves, helmet locking devices, rain suits, luggage, and eyewear, all under the Studds brand.
The company’s products are not only available in India but are also exported to more than 70 countries, including regions like the Americas, Europe, and Asia (excluding India). Studds also manufactures helmets for third-party brands such as Jay Squared LLC (Daytona helmets in the US) and O’Neal, catering to the US, European, and Australian markets.
Studds Accessories IPO Financials
For the six months ending September 2024, Studds Accessories reported a revenue from operations of ₹285 crore and a net profit of ₹33 crore. The company has shown steady growth, with a strong financial outlook in the growing two-wheeler accessories market. Studds’ healthy revenue and profitability underscore its leading position in the market.
The Company’s Previous Attempt at Going Public
Studds Accessories first filed for an IPO in August 2018. The company received SEBI’s approval for the IPO in December 2018, but the company chose not to proceed with the issue at that time. The current Studds Accessories IPO 2025 is the company’s second attempt to go public, and it is being closely watched by investors.
Why is the Studds Accessories IPO Important?
The Studds Accessories IPO will offer investors the opportunity to invest in one of India’s most well-known helmet manufacturers. With strong domestic and international sales, Studds has established a solid presence in the two-wheeler accessories market. This IPO marks a significant step in the company’s growth strategy, as it aims to expand its reach and strengthen its financial position.
Role of Lead Managers
The Studds Accessories IPO will be managed by IIFL Capital Services and ICICI Securities, who have been appointed as the lead managers for the public issue. These firms will oversee the IPO process and ensure that it proceeds smoothly, from the filing stage to the listing of the company’s shares.
Studds Accessories’ Expanding Market Reach
Studds Accessories has been gaining market share in the two-wheeler accessories market. With strong domestic demand and an expanding international footprint, the company is well-positioned to capitalize on growth opportunities in India and abroad. The Studds Accessories IPO will enable the company to enhance its market visibility and strengthen its position in the competitive two-wheeler helmet industry.
What Investors Should Know About Studds Accessories IPO
As an Offer for Sale (OFS), the Studds Accessories IPO will not raise funds for the company itself. Instead, the proceeds will go to the selling shareholders, including the promoters and other stakeholders. The IPO presents a chance for investors to invest in a well-established company with a global footprint in the two-wheeler accessories market.
Conclusion
The Studds Accessories IPO 2025 presents an exciting opportunity for investors to participate in the public offering of a company that has established itself as a leader in the two-wheeler accessories market. With a solid financial record, strong brand recognition, and a growing international presence, Studds Accessories is well-positioned for continued growth. Investors interested in the IPO should carefully assess the company’s performance and market position before making investment decisions.
