Studds Accessories Ltd: Pioneering the Helmet Industry and Preparing for IPO
Studds Accessories Ltd, the largest producer of two-wheeler helmets in India, is making headlines with its recent announcement to launch an Initial Public Offering (IPO). The company has received the final stage of approval from the Securities and Exchange Board of India (SEBI), marking a significant milestone in its journey towards becoming a publicly traded entity.
A Brief History
Founded in 1983 and headquartered in Faridabad, Haryana, Studds Accessories Ltd has established itself as a leader in the helmet manufacturing sector. The company designs and produces a diverse range of two-wheeler helmets and accessories, catering to both mass-market and premium segments through its brands—Studds and SMK. Over the years, Studds has expanded its product line to include riding gear such as jackets, gloves, eyewear, and rainwear.
The IPO Journey
The road to the IPO has not been straightforward for Studds. The company initially filed its Draft Red Herring Prospectus (DRHP) in March 2025, after a seven-year hiatus since its last attempt in 2018. In that earlier filing, the company aimed to raise ₹98 crore through a primary share issuance, but the proposal did not materialize.
Now, with SEBI’s approval, Studds is set to launch an IPO that consists entirely of an Offer for Sale (OFS) component. This will involve the sale of 77.86 lakh shares at a face value of ₹5 per share by existing shareholders, including promoters. Importantly, the company will not receive any proceeds from this public issue; instead, all funds will go to the selling shareholders. The equity shares are expected to be listed on both the National Stock Exchange and the Bombay Stock Exchange (BSE).
IIFL Capital Services Ltd and ICICI Securities Ltd have been appointed as lead managers for the IPO, ensuring that the process is handled with expertise and efficiency.
Business Overview
Studds Accessories Ltd stands out not just for its size but also for its commitment to quality and innovation. Operating four state-of-the-art manufacturing facilities in Haryana, the company boasts an impressive annual installed capacity of around 9 million helmets. Its reach extends beyond Indian borders, exporting to over 70 countries, including Europe, the U.S., and Latin America. Notably, Studds supplies helmets to global brands such as Daytona and O’Neal, further solidifying its reputation in the international market.
The company has built a robust domestic distribution network, comprising over 340 dealers, which allows it to maintain a strong presence in the Indian market. This extensive network, combined with a focus on quality and safety, has helped Studds maintain its leadership position in the industry.
Financial Performance
In terms of financial health, Studds Accessories Ltd has shown promising growth. For the fiscal year 2024, the company reported a revenue of approximately ₹529 crore, reflecting a 6% increase from the previous year. More impressively, its net profit surged by 73% to ₹57 crore, driven by improved operational efficiency and a shift towards higher-margin products. This financial performance underscores the company’s potential for growth and profitability, making it an attractive option for investors.
Conclusion
As Studds Accessories Ltd prepares for its IPO, it stands at a pivotal moment in its history. With a strong brand presence, a diverse product range, and impressive financial growth, the company is well-positioned to capitalize on the increasing demand for two-wheeler helmets in India and beyond. Investors looking for opportunities in the growing safety gear market may find Studds to be a compelling option.
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Disclaimer
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