Studds Moves Forward with IPO Plans After Initial Setback
Studds, a leader in the Indian helmet manufacturing industry, is taking a significant step towards launching its initial public offering (IPO) by re-filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This move comes after an earlier attempt in 2018 fell short due to the company’s aspirations for a higher valuation than what was on the table.
Details of the Upcoming IPO
According to insights from the newly submitted DRHP, the upcoming IPO will primarily consist of an offer for sale, allowing promoters and existing shareholders to offload a total of 7.79 million shares. The lead managers orchestrating this issue are IIFL Capital Services and ICICI Securities, lending their expertise to ensure a smooth process.
- Previous Filing (2018):
- Intended to raise ₹98 crore through a fresh issue.
- Included an offer for sale of 3.9 million shares.
Studds: A Trusted Brand in Helmet Manufacturing
Established over four decades ago, Studds has carved a niche for itself in the design, manufacture, and marketing of two-wheeler helmets under the iconic names Studds and SMK. The company also diversifies its product line with accessories that enhance the riding experience, including:
- Two-wheeler luggage
- Gloves
- Helmet locking devices
- Rain suits
- Riding jackets
- Eyewear
Moreover, Studds extends its reach internationally by producing helmets for Jay Squared LLC, marketed as Daytona in the United States, and for O’Neal in various European markets.
Manufacturing Excellence and Market Reach
With four state-of-the-art manufacturing facilities located in Faridabad, Studds has established a robust distribution network that spans across India and more than 70 countries worldwide. The company has maintained a solid financial performance, showcasing consistent profitability. In the fiscal year 2024, Studds reported a net profit of ₹57.2 crore, highlighting its strong market position.
Looking Ahead
As Studds prepares for this IPO, it marks a pivotal moment in its growth trajectory. Investors and market enthusiasts are keenly watching how the company will navigate this process and what it will mean for the future of helmet manufacturing in India.
For more updates on this IPO and other financial news, stay tuned to our blog.
