Studds Accessories Ltd IPO – Mainboard
Studds Accessories Ltd is Asia’s largest two-wheeler helmet company and a global leader in motorcycle accessories. With four state-of-the-art manufacturing plants in Faridabad, Haryana, it produces more than 9 million helmets a year under the flagship mass-market “Studds” brand and the premium “SMK” label. Its products reach over 70 countries, making Studds a widely recognized exporter and a preferred choice among Indian and international bikers.
Read full DRHP here: SEBI DRHP STUDDS ACCESSORIES
IPO Details
| Detail | Information |
|---|---|
| IPO Opening | 30 October 2025 |
| IPO Closing | 3 November 2025 |
| Price Band | ₹557 – ₹585 per share |
| Minimum Lot | 25 shares (₹14,625 at the upper band) |
| Issue Size | ₹455.5 crore (100% OFS, 0.78 crore shares) |
| Face Value | ₹5 |
| Listing Date | 7 November 2025 (BSE, NSE) |
| Registrar | CLICK HERE |
Use of Funds:
All proceeds go to selling shareholders (promoters/investors); the company will not receive new funds (pure Offer For Sale).
Key Financials
| Metric | FY23 | FY24 | FY25 (Est) |
|---|---|---|---|
| Revenue (₹ Cr) | 462 | 517 | 593 |
| EBITDA (₹ Cr) | 68 | 89 | ~107 |
| EBITDA Margin (%) | 14.7% | 17.3% | ~18% |
| PAT (₹ Cr) | 40 | 55 | 68 |
| PAT Margin (%) | 8.7% | 10.6% | ~11% |
| EPS (₹, Basic) | – | ~13.7 | ~17.7 |
| ROE (%) | – | 14.9 | 16–17 |
| Debt to Equity | 0.09 | 0.03 | (–0.07) |
Analysis:
- Revenue (₹ Cr): Total sales are growing steadily year-on-year, projected to reach ₹593 crore in FY25.
- EBITDA (₹ Cr): Profit from core operations before interest and taxes is rising, showing improved business efficiency.
- EBITDA Margin (%): The share of profit from operations is expanding, indicating better cost management.
- PAT (₹ Cr): Net profit after all expenses is increasing each year, reflecting healthy bottom-line growth.
- PAT Margin (%): The percentage of revenue kept as final profit is rising, showcasing more profitable sales.
- EPS (₹, Basic): Earnings per share are climbing, which means higher returns for shareholders.
- ROE (%): The company’s ability to generate profit from shareholder funds is improving.
- Debt to Equity: The ratio is nearing zero, meaning Studds is almost debt-free with very low financial risk.
- Growth: All key metrics (sales, profits, margins) have consistently improved year after year, signaling robust business momentum.
Business Highlights
- Market Leadership: #1 helmet brand in India by revenue, #1 in the world by production volume. Holds 27.3% market share by volume, 25.5% by value in India (Dec 2024, CARE Ratings).
- Wide Reach: Sells 7.4 million helmets in FY25, >160 Studds models, 80+ SMK designs, innovating with Bluetooth, rear-view camera helmets, aerodynamic and aesthetic features.
- Distribution: 363+ active distributors, presence online, OEMs, retail, and through institutional clients like police and CSD canteens.
- Vertical Integration: In-house facilities for EPS liners, decals, testing, and R&D ensure quality and cost control.
- Innovation: Strong design R&D, with 75-member D&D team, leading technology adoption and quick market rollout.
Why investors like this mainboard ipo?
- Global Exporter: Over 20% of revenue from exports to 70+ countries; compliance with global safety standards (BIS, ECE, SNI, more).
- Financial Discipline: Margins and ROCE on a rising trajectory. Virtually debt-free by FY25.
- Brand Equity: Trusted legacy and top-of-mind recall in India. Expanding premium segment with SMK.
- Operational Excellence: Advanced, automated manufacturing with scalable capacity and cost efficiencies.
Points of Caution
- Geographic Concentration: All plants in Faridabad, Haryana—industrial or weather disruptions here could halt production.
- Supply Chain Risk: Order-based raw material sourcing; no long-term supplier contracts can lead to supply shocks or price spikes.
- Regulatory: Required to comply with multiple country-specific certifications (BIS, ECE, Philippine Standard, SNI).
- Demand Exposure: Linked to the auto/two-wheeler industry—sector slowdowns or downturns can impact sales.
- Valuation: P/E ratio of ~28x suggests a premium for stability and brand, but may be rich for a moderate-growth manufacturing company.
- No New Money: Entire IPO is OFS—no fresh capital for expansion or R&D from this issue.
- Product Trends: Must continually innovate to match changing user tastes, comfort, and regulatory requirements.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.