Studds Accessories Limited Eyes IPO with Ambitious Plans
Studds Accessories Limited has officially taken a significant step towards going public by submitting its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This marks the company’s first attempt at an initial public offering (IPO) in seven years, showcasing its growth in the two-wheeler helmet market. The firm aims to raise ₹98 crore through a primary share issuance, along with a plan to sell 39.4 lakh shares, although previous IPO efforts were not realized.
Dominance in the Helmet Market
Recognized as the largest two-wheeler helmet manufacturer in India by revenue for Fiscal 2023, Studds is also touted as a global leader in terms of volume for Calendar Year 2024, as highlighted in a recent CARE Report. With nearly 50 years of experience, the company has established itself as a robust player within the industry. As of March 26, 2025, Studds boasts an impressive annual production capacity of 9.04 million units across its three manufacturing facilities, with sales reaching approximately 7.10 million helmets in Fiscal 2024.
Expanding Global Reach
The introduction of the ‘SMK’ brand in 2016 has significantly boosted the company’s market presence, allowing it to penetrate both domestic and international markets effectively. As of December 31, 2024, Studds and SMK products are available in over 70 countries, catering to diverse consumer needs. The company’s product lineup includes not only helmets but also accessories like luggage, gloves, helmet locking devices, rain suits, riding jackets, and eyewear, all marketed under the ‘Studds’ brand.
Details of the IPO
The upcoming IPO will involve a complete stake sale, with the promoter group and other stakeholders planning to sell up to 77.9 lakh shares. Key individuals participating in this sale include Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Chand Khurana. According to the DRHP, the objectives of the offer are twofold: to facilitate the sale of 7,786,120 equity shares with a face value of ₹5 each by the selling shareholders and to achieve a listing on the Stock Exchanges.
- The company will not benefit financially from the Offer for Sale, as the proceeds will go directly to the selling shareholders after covering associated expenses and taxes.
- IIFL Capital Services Ltd and ICICI Securities Ltd are the lead managers for this IPO process.
Conclusion
As Studds Accessories Limited prepares for its IPO, the company stands poised for further growth and expansion. With a strong foothold in both the Indian and international markets, it aims to leverage this opportunity for increased visibility and market reach. Stay tuned for more updates on this promising IPO as it unfolds.
