Studds Accessories, the helmet manufacturing giant, is gearing up to launch its ₹455.49 crore IPO on October 30, 2025, inviting investors to partake in a company that dominates India's helmet market. The IPO, which closes on November 3, 2025, is entirely an offer for sale (OFS) with a price band of ₹557 to ₹585 per share. The anticipated listing date is November 7, 2025.
IPO Details and Objectives
The IPO involves the offloading of 77.86 lakh equity shares by existing shareholders, including promoters Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Chand Khurana. With no fresh issue of shares, the proceeds will go to the selling shareholders. Retail investors can bid for a minimum of 25 shares, up to a maximum of 14,625 shares.
Grey Market Premium (GMP)
The IPO is generating significant buzz, trading at a grey market premium (GMP) of around ₹55 per share. This suggests a potential listing price of approximately ₹640 per share, representing a nearly 9.5% gain for early investors.
Financial Performance
Studds has demonstrated consistent financial growth. In FY25, the company reported revenue of ₹584 crore, a 10.3% increase from ₹529 crore in FY24. Net profit surged 22% year-on-year to ₹70 crore, with Earnings Per Share (EPS) climbing from ₹14.54 to ₹17.70. For the quarter ended June 30, 2025, Studds Accessories reported revenue from operations of ₹1,491.83 million and a net profit of ₹202.46 million.
Market Position and Strengths
As of FY24, Studds commands a domestic market share of 27.3% by volume and 25.5% by value. The company boasts a fully integrated design-to-delivery setup, contributing to its strong return ratios, robust balance sheet, and self-funded growth strategy. Studds operates four manufacturing facilities in Faridabad, equipped with automated production, coating, and testing capabilities. The company's strengths include a diverse product range, a strong brand portfolio with Studds and SMK, and a wide distribution network across India and over 70 countries.
Growth Drivers and Strategies
Studds attributes its growth to consistent product innovation, adherence to safety standards, and a broad product portfolio. The company offers over 240 helmet designs across various categories, catering to both mass commuter and premium segments. The company also benefits from the broader two-wheeler industry upcycle, supported by GST rationalization and rising safety regulations.
Risks and Concerns
Studds' sales are heavily dependent on the market reception of its helmet designs and models. The company's reliance on distributors and OEMs also exposes it to demand fluctuations. Commodity price volatility and slowdown in two-wheeler sales could affect Studds' revenue.
Investment Considerations
SBI Securities has given a "Subscribe" rating to the IPO, citing Studds' market leadership, integrated operations, and growth potential. At the upper price band of ₹585, Studds is valued at a P/E of 33.1x (FY25 earnings). While the IPO presents an opportunity to invest in a market leader, investors should consider the company's risks and growth prospects.
