Studds Accessories IPO: Gearing Up for a Ride on the Stock Market
India's thriving two-wheeler market isn't just about motorcycles and scooters; it's also about the vital accessories that keep riders safe and stylish. At the forefront of this segment is Studds Accessories Limited, a name synonymous with quality helmets and motorcycle gear. The company is set to embark on a new journey with its highly anticipated Initial Public Offering (IPO). This blog post delves deep into the Studds Accessories IPO, offering a comprehensive analysis for potential investors and market enthusiasts.
**Unveiling Studds Accessories Ltd. - A Pioneer in Two-Wheeler Safety**
Established in 1983, Studds Accessories has grown to become a leading manufacturer and exporter of two-wheeler helmets and motorcycle accessories. Headquartered in Faridabad, Haryana, the company has carved a significant niche for itself in both domestic and international markets.
**What Defines Studds Accessories?**
Extensive Product Portfolio: Beyond a diverse range of helmets under its popular "Studds" and premium "SMK" brands, the company also offers essential accessories like two-wheeler luggage, gloves, helmet security guards, rain suits, riding jackets, and eyewear.
Global Footprint: Studds products are not only widely distributed across India but also exported to over 70 countries spanning the Americas, Asia, Europe, and other regions. The company also manufactures helmets for international brands like "Daytona" in the US (for Jay Squared LLC) and "O’Neal" for European, US, and Australian markets.
Robust Manufacturing: Operations are anchored by four manufacturing facilities in Faridabad, India, ensuring efficient production and quality control.
Innovation Driven: With a dedicated R&D team of 75 members, Studds continuously innovates, offering over 240 different designs across its product categories (80 under SMK and 160+ under Studds).
Impressive Scale: As of Fiscal 2025, the company reported selling 7.40 million helmets and managing 19,258 SKUs (Stock Keeping Units), reflecting its significant market presence and operational complexity.
**Decoding the Studds IPO - Essential Investment Insights**
The Studds Accessories IPO is a significant event for investors looking to participate in India's growing consumer discretionary and manufacturing sectors. Here’s a breakdown of the key details:
**Key Offering Metrics at a Glance**
| Particulars | Details |
|---|---|
| Offer Type | Book Build Issue, Mainboard IPO |
| Total Issue Size | 77,86,120 shares (aggregating up to ₹455.49 Crore) |
| Sale Type | Entirely an Offer For Sale (OFS) |
| Face Value | ₹5 per share |
| Price Range | ₹557 to ₹585 per share |
| Listing On | BSE, NSE |
**Important Dates: Your IPO Timeline**
Mark your calendars! The Studds Accessories IPO is structured with the following tentative schedule:
Oct 30, 2025
IPO Open
Nov 3, 2025
IPO Close
(UPI Mandate Cut-off 5 PM)
Nov 4, 2025
Tentative Allotment
Nov 6, 2025
Refunds & Demat Credit
Nov 7, 2025
Tentative Listing
**Understanding the Investment Lot**
Investors can bid for a minimum of 25 shares and in multiples thereafter. The minimum and maximum investment amounts vary based on investor categories:
| Investor Category | Application Lots (Min) | Shares (Min) | Amount (Min - at upper price band) |
|---|---|---|---|
| Retail Individual Investors (RII) | 1 | 25 | ₹14,625 |
| Small HNI (sNII) | 14 | 350 | ₹2,04,750 |
| Big HNI (bNII) | 69 | 1,725 | ₹10,09,125 |
Note: The maximum application for Retail Investors is 13 lots (325 shares) amounting to ₹1,90,125. For Small HNI, the maximum is 68 lots (1,700 shares) amounting to ₹9,94,500.
**Who's Behind the Helm? Promoter Insights**
The promoters of Studds Accessories Ltd. are Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Shilpa Arora. Their commitment to the company is reflected in their significant shareholding, which will see a slight dilution post-IPO as it is an Offer for Sale.
| Holding Stage | Promoter Shareholding |
|---|---|
| Pre-Issue Holding | 78.78% |
| Post-Issue Holding | 61.76% |
**IPO Structure: Allocation for All**
The issue reserves shares for various investor categories to ensure broad participation:
Qualified Institutional Buyers (QIBs): Not more than 50% of the Offer.
Retail Individual Investors (RIIs): Not less than 35% of the Offer.
Non-Institutional Investors (NIIs): Not less than 15% of the Offer.
**Purpose of the Offering**
As this is an Offer for Sale (OFS), the primary objective of the Studds Accessories IPO is to achieve the benefits of listing the equity shares on the stock exchanges. The funds raised from the sale of shares will go to the existing selling shareholders, rather than directly into the company's coffers for fresh investments or debt reduction.
**Financial Soundness and Performance**
Studds Accessories has demonstrated robust financial growth, showcasing its strong market position and operational efficiency. A glance at its recent performance reveals positive trends:
**Revenue and Profit Trajectory**
The company has consistently improved its financial performance. Between the financial year ending March 31, 2024, and March 31, 2025, Studds Accessories saw its revenue increase by 11% and its Profit After Tax (PAT) climb by an impressive 22%.
| Financial Period Ended | Assets (₹ Crore) | Total Income (₹ Crore) | Profit After Tax (₹ Crore) | EBITDA (₹ Crore) | Net Worth (₹ Crore) | Total Borrowing (₹ Crore) |
|---|---|---|---|---|---|---|
| Jun 30, 2025 | 586.61 | 152.01 | 20.25 | 30.26 | 469.77 | 2.91 |
| Mar 31, 2025 | 556.71 | 595.89 | 69.64 | 104.84 | 449.48 | 2.91 |
| Mar 31, 2024 | 485.56 | 535.84 | 57.23 | 90.19 | 387.41 | 0.61 |
| Mar 31, 2023 | 461.07 | 506.48 | 33.15 | 60.05 | 338.02 | 30.58 |
**Key Financial Health Indicators**
These metrics, as of March 31, 2025, provide deeper insights into the company's efficiency, profitability, and valuation:
| Key Performance Indicator | Value |
|---|---|
| Return on Equity (ROE) | 16.64% |
| Return on Capital Employed (ROCE) | 20.25% |
| Debt/Equity Ratio | -0.07 (Indicating very low debt relative to equity) |
| Return on Net Worth (RoNW) | 15.49% |
| PAT Margin | 11.93% |
| EBITDA Margin | 17.96% |
| Price to Book Value | 5.12 |
| Market Capitalization (Post-IPO) | ₹2302.17 Crore (at upper price band) |
| EPS (Pre-IPO, FY25) | ₹17.70 |
| P/E (x) (Pre-IPO, FY25) | 33.06 |
| EPS (Post-IPO, Annualized Jun 2025) | ₹20.58 |
| P/E (x) (Post-IPO, Annualized Jun 2025) | 28.43 |
**Strategic Outlook - A SWOT Analysis of Studds**
A balanced view of the company's internal and external factors can help investors gauge its potential.
**Strengths**
Market Leadership: A prominent player in the Indian two-wheeler helmet and accessories segment.
Extensive Product Range: Diversified portfolio including helmets and various riding accessories under established brands.
Strong Global Presence: Significant export operations to over 70 countries, reducing reliance on a single market.
Robust Financial Performance: Consistent growth in revenue and profitability, healthy margins.
In-house R&D and Manufacturing: Ability to innovate and control quality across the value chain.
**Weaknesses**
Market Cyclicality: Performance tied to the two-wheeler industry, which can be influenced by economic cycles.
Competitive Landscape: Operates in a market with several organized and unorganized players.
No Direct Funds to Company: Being an OFS, the IPO proceeds do not directly fund company expansion or debt reduction.
**Opportunities**
Growing Two-Wheeler Market: Continued expansion of the Indian two-wheeler market and increasing disposable incomes.
Rising Safety Awareness: Increasing regulatory emphasis and consumer awareness regarding road safety boosting helmet demand.
Product Diversification: Potential to further expand into related two-wheeler accessories or personal safety gear.
Untapped International Markets: Opportunities for deeper penetration in existing export markets and entry into new ones.
**Threats**
Raw Material Price Volatility: Fluctuations in the cost of raw materials (plastics, metals, fabrics) could impact margins.
Intense Competition: Pressure from both domestic and international brands in the accessories segment.
Regulatory Changes: Any adverse changes in vehicle safety standards or import/export policies.
Economic Downturn: A significant slowdown could impact discretionary spending on accessories.
**Important Stakeholders**
**IPO Management Team**
The IPO is skillfully managed by a consortium of experienced financial entities:
Lead Managers: IIFL Capital Services Ltd., ICICI Securities Ltd.
**The Registrar's Role**
The registrar for the Studds Accessories IPO is MUFG Intime India Pvt.Ltd., responsible for managing the application and allotment process.
Registrar: MUFG Intime India Pvt.Ltd.
Contact Email: studds.ipo@in.mpms.mufg.com
**Company Contact Information**
For further inquiries, the company can be reached at:
Address: Plot No. 918, Sector 68, IMT, Faridabad, Haryana, 121004
Phone: +91 129429 6500
Email: secretarial@studds.com
Website: http://www.studds.com/
**Conclusion: A Look Ahead for Studds Accessories**
The Studds Accessories IPO represents a significant milestone for a company that has established itself as a leader in two-wheeler safety gear. With a strong brand presence, robust financials, a wide product portfolio, and an expanding global reach, Studds Accessories is poised for continued growth. While the IPO being an Offer for Sale means no immediate capital infusion for the company's direct expansion, the listing itself brings enhanced visibility and liquidity to its shares.
Potential investors should carefully review the company's financials, market position, and the broader industry outlook. Considering the company's performance, management, and the growth trajectory of the Indian two-wheeler market, Studds Accessories offers an interesting proposition. As always, informed decision-making backed by thorough research is paramount when venturing into the public markets.