The Studds Accessories IPO has opened for subscription and is drawing strong attention from investors in the two-wheeler accessories and automotive aftermarket space. Known as one of the world’s largest helmet manufacturers by volume, Studds has a strong presence in India and over 70 international markets. The company offers helmets and motorcycle gear under the “Studds” and “SMK” brands, targeting mass, mid-range, and premium customer segments. However, this IPO is entirely an Offer for Sale (OFS), which means the company will not receive any proceeds from the issue. With improving revenue growth and profitability trends, the company appears fundamentally sound, but valuation considerations and the nature of the offer require careful analysis. Let’s deep dive into the Studds Accessories IPO to understand whether one should subscribe or avoid this offering.
About Studds Accessories Ltd.
Incorporated in 1983 and headquartered in Faridabad, Studds Accessories is a leading manufacturer of two-wheeler helmets and motorcycle lifestyle accessories. The company has built strong brand equity across customer segments and is known for durable, safety-certified helmet models.
Product Portfolio
Product Portfolio- Helmets (Open-face, Full-face, and Flip-up)
- Riding jackets and gloves
- Luggage boxes and panniers
- Rainwear and riding accessories
Market Presence
- Distribution network spans India and overseas markets
- Exports to 70+ countries across Asia, Europe, and the Americas
- Manufacturing across 4 facilities in Faridabad with modern molding, painting, and quality testing infrastructure
The company sells helmets under two brands:
- Studds → Mass and mid-market brand
- SMK → Premium international brand
Studds Accessories IPO Issue Details
| Detail | Information |
|---|---|
| IPO Opens | October 30, 2025 |
| IPO Closes | November 3, 2025 |
| IPO Type | Book-Built Issue |
| Issue Size | ₹455.49 Crores |
| Offer Type | 100% Offer for Sale (OFS) |
| Price Band | ₹557 – ₹585 per share |
| Lot Size | 25 shares |
| Minimum Investment | ₹14,625 (Retail) |
| Listing | NSE & BSE |
| Retail Quota | Not less than 35% |
| NII Quota | Not less than 15% |
| QIB Quota | Not more than 50% |
Studds Accessories IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | October 30, 2025 |
| IPO Closes | November 3, 2025 |
| Allotment Date | November 4, 2025 |
| Refunds Initiated | November 6, 2025 |
| Shares Credited to Demat | November 6, 2025 |
| Listing Date (Tentative) | November 7, 2025 |
Financial Performance
| Period | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EBITDA Margin | PAT Margin |
|---|---|---|---|---|---|
| FY23 | 506.4 | 60.05 | 33.15 | 12.03% | 6.64% |
| FY24 | 535.8 | 90.19 | 57.23 | 17.05% | 10.82% |
| FY25 | 595.8 | 104.84 | 69.64 | 17.96% | 11.93% |
Key Highlights:
- Revenue has grown steadily over FY23–FY25
- EBITDA and PAT margins have expanded significantly
- Debt levels remain low, showing strong balance sheet discipline
Objects of the Issue
Since the IPO is an Offer for Sale, the company will not receive funds. Proceeds will go to existing shareholders, including promoters.
Valuation – P/E Comparison
The company’s FY25 EPS stands at ₹20.58 (post-issue basis). At the upper band ₹585:
Post-Issue P/E = 28.43x
Peer Comparison
RHP clearly states:
There are no directly comparable listed companies in India in the same segment.
However, operational comparisons with large unlisted helmet brands show Studds has:
- Strong revenue scale
- Healthy return ratios
- Better PAT margins vs peers
This suggests Studds is a market leader, but the valuation is not cheap.
Competitive Strengths
1. Market Leadership
Largest helmet manufacturer by volume gives pricing, distribution, and brand leverage.
2. Strong Product Innovation
Increasing focus on premium helmets through SMK brand.
3. Diversified Global Presence
Reduces dependence on Indian demand cycles.
4. Low Debt and Healthy Returns
Improving profitability and strong ROE/ROCE metrics.
Key Risk Factors
1. Entire Issue is OFS
No fresh capital → Company does not gain financially from IPO proceeds.
2. High Competition from Unlisted Players
Vega and Steelbird remain strong domestic competitors.
3. Demand is Linked to Two-Wheeler Market
Any slowdown in motorcycle sales can reduce growth.
4. Regulatory Safety Standards May Evolve
Compliance costs may rise over time.
5. Risk Factors
Investors who are wiling to invest should go through Studds Accessories IPO RHP for all risk factors.
Today Grey Market Premium (GMP)
GMP is fluctuating due to market conditions.
Current GMP (Unofficial): Trending around ₹58–₹85 per share.
(GMP is volatile and not a guarantee of listing performance.)
How to Apply for Studds Accessories IPO
You can apply through:
- UPI-enabled broker apps (Zerodha, Groww, Upstox, etc.)
- Net banking ASBA via your bank
Make sure to approve the UPI mandate by 5 PM on the closing day.
Listing Gain Potential / Profit Estimate
Studds Accessories IPO may witness decent listing interest due to its strong brand recall, leadership position in the helmet category, and improved financial performance in recent years. The company exports to multiple geographies and operates in a segment that has a large and growing consumer market.
However, investors should note that the IPO is entirely an Offer for Sale, and valuations are not cheap when compared to general auto-component sector averages. Therefore, while demand from institutional and retail investors may support moderate listing gains, the upside may be limited unless broader market sentiment remains strong.
Expected Listing Scenario
- If markets remain stable: Moderate listing gains are possible
- If markets remain volatile: Gains may be capped or flattish
- Long-term investors: Should consider accumulating post-listing if valuations soften
Studds Accessories IPO – Conclusion – Subscribe or Avoid?
Studds Accessories is a fundamentally strong market leader with improving profitability and low debt. However, the IPO being 100% OFS and valuations appearing on the higher side makes this a cautious investment case.
Long-term investors can accumulate post-listing if valuations moderate, otherwise, investors can invest for listing gains only.
FAQs
1. Is Studds a debt-heavy company?
No, the company has very low debt levels.
2. Will the company receive money from this IPO?
No, this is an OFS.
3. What is the lot size for retail investors?
25 shares per lot.
4. Does Studds export its products?
Yes, to over 70 countries.
5. Is Studds a good long-term investment?
Good fundamentals, but long-term entry price matters.
Disclaimer
Investing in IPOs involves market risks. This article is for educational purposes only and does not constitute financial advice. Consult your financial advisor before investing.
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