Studds Accessories IPO 2025: Comprehensive Guide for Indian Investors
Table of Contents
- Introduction
- Company Overview: Who is Studds Accessories?
- Business Model & Market Position
- Financial Performance and Key Metrics
- IPO 2025: Structure and Key Details
- Grey Market Premium (GMP) Trends
- Subscription & Allotment Status
- Listing Date and Early Market Performance
- Strengths, Weaknesses & Risks
- Valuation Check: Is the IPO Reasonably Priced?
- Strategic Outlook: What’s Next for Studds?
- Questionnaire Sub-Headings
- Disclaimer
1. Introduction
The initial public offering (IPO) of Studds Accessories Limited has attracted considerable interest among Indian retail and institutional investors. Given the company’s leadership in the two-wheeler helmet and accessories segment, its listing provides a case study for an established manufacturing firm moving to the public markets through an Offer for Sale (OFS) structure.
This article covers all relevant aspects: company background, IPO specifics including price band and GMP, allotment and listing timeline, financials, and investment considerations — tailored for Indian investors seeking clarity in decision-making.
2. Company Overview: Who is Studds Accessories?
Studds Accessories is a Faridabad-based manufacturer of two-wheeler helmets and motorcycle accessories. The company markets its products under brands such as Studds and SMK, and claims to be India’s largest helmet manufacturer by revenue (FY 2023) and the world’s largest by volume (calendar year 2024).
Founded in 1983, the firm began with manufactured helmets and gradually expanded across commuter and premium segments, while also exporting to over 70 countries. As per recent data, roughly 92–93 % of its sales derive from helmets.
3. Business Model & Market Position
Products and Segments
Studds supplies various types of helmets (full-face, flip-up, off-road, open-face) and other motorcycle accessories. Its pricing spectrum for the mass/mid-market brand “Studds” typically ranges between ₹875 and ₹4,000, while its premium brand “SMK” ranges from roughly ₹3,000 up to ₹12,800.
Manufacturing & Distribution
The company operates four manufacturing facilities in Faridabad, Haryana. The facilities reportedly feature advanced manufacturing technologies (robotic machinery, automated coating systems, in-house test labs certified by the UK’s Vehicle Certification Agency).
In distribution, Studds has 363 active distributors in India as of August 31, 2025, and exports to more than 70 countries. Its multi-channel reach includes OEMs, exclusive brand outlets, e-commerce, and institutional customers (e.g., police CSDs).
Market Dynamics
The company is exposed to the two-wheeler market. Any decline in two-wheeler sales, regulatory changes for helmets, or raw material inflation (ABS plastic, polycarbonate, paints) may affect performance. The reliance on a few key models is another structural factor (top 15 SKUs contributed ~73 % revenue in June 2025 quarter).
4. Financial Performance and Key Metrics
Below are some key financials (in INR crores) for Studds Accessories:
- Revenue from operations:
- FY 23: ~₹499.17 crore
- FY 24: ~₹529.02 crore
- FY 25: ~₹583.82 crore
- Profit after tax (PAT):
- FY 23: ~₹33.15 crore
- FY 24: ~₹57.23 crore
- FY 25: ~₹69.64 crore
- Gross margin and raw-material cost: Raw-material costs were ~52–56 % of total expenses in recent years.
From these figures, growth in revenue (~17 % CAGR from FY 23 to FY 25) and PAT (~50 % CAGR) stand out. However, the fact that the IPO is an OFS suggests the company will not receive fresh capital proceeds.
5. IPO 2025: Structure and Key Details
Price Band: ₹557 to ₹585 per equity share.
Minimum Lot Size: 25 shares (at upper band approximately ₹14,625)
Issue Size: ₹455.49 crores through an Offer for Sale (OFS) of 77.86 lakh shares.
Dates:
- Opening: 30 October 2025
- Closing: 3 November 2025
- Allotment: 4 November 2025
- Listing Date: 7 November 2025
Promoters’ Share Sell-down: Since it is an OFS, existing promoters/sellers will get the proceeds, not the company.
6. Grey Market Premium (GMP) Trends
In Indian IPO lingo, GMP (Grey Market Premium) reflects the premium at which applications/trading are unofficially quoted in unlisted markets.
For Studds Accessories:
- GMP touched around ₹68 per share on 4 November 2025.
- By 7 November, GMP was down to ~₹50 per share.
- Reports indicated before listing that GMP implied an approximate listing price of ~₹630 (≈10 % premium).
Investors should note that GMP is not a guaranteed indicator of listing gains—actual listing price depends on market conditions, valuation sentiment, and selling pressure.
7. Subscription & Allotment Status
The subscription numbers are key markers of investor demand:
- QIB category: ~160 times subscription.
- Retail Individual Investors (RII): ~22 times.
- Overall: ~73.25 times.
Allotment date was set as 4 November 2025. Applicants can check status via registrar website (e.g., MUFG Intime India Pvt. Ltd).
8. Listing Date and Early Market Performance
Shares commenced trading on 7 November 2025 on BSE and NSE.
Despite strong subscription, the stock listed at a discount of ~3–4 % (listed at ₹565 vs upper band ₹585) on NSE.
This suggests that while the IPO was well subscribed, market sentiment and valuation expectations may have been cautious.
9. Strengths, Weaknesses & Risks
Strengths
- Market leadership in Indian two-wheeler helmet segment.
- Diversified price points and brand portfolio (mass to premium).
- Export presence across 70+ countries.
- Manufacturing integration and innovation (large SKU base).
Weaknesses & Risks
- Strong dependency on two-wheeler industry and helmet regulatory environment.
- Raw-material input costs (ABS plastic etc.) subject to volatility.
- Concentration risk: Four plants all in one region, limited geophysical diversification.
- Issue structure: OFS route means company receives no fresh capital thus future growth funding remains internal.
Investment Risks
- Listing below issue price may reflect overvaluation at band or cautious market.
- If two‐wheeler sales slump (due to EV shift or regulation), helmet demand may weaken.
- ERP * export regulatory changes could impact business.
10. Valuation Check: Is the IPO Reasonably Priced?
With PAT ~₹69.64 crore for FY 25 and upper price band at ₹585, the implied P/E ratio stands at ~33.1x (post issue).
For a manufacturing company in auto‐ancillary sector, this is on the higher side unless future growth prospects are strong. Investors thus need to factor in:
- Growth trajectory (revenue & profit CAGR)
- Margin improvement potential
- Export expansion
- Market share gains
Compared to auto components peers (often trading at 20–25x P/E), Studds appears to have a premium built in.
11. Strategic Outlook: What’s Next for Studds?
- Expansion into premium accessories and new segments (beyond helmets).
- Greater export focus to reduce domestic demand dependency.
- Innovation in helmet safety standards, sports helmets, and new mobility ecosystems (e-two-wheelers).
- Strengthening distribution and direct‐to‐consumer (D2C) presence.
If execution is strong, Studds could justify the valuation premium over the medium term.
12. Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Investors should consult with a qualified SEBI-registered investment advisor and conduct their own due diligence before applying for any IPO. Past performance or subscription statistics do not guarantee future results.
Final Words
In summary, Studds Accessories presents a well-known brand entering the public market at a time of strong two-wheeler demand and export diversification. The IPO garnered robust subscription but underwhelming listing performance raises questions on valuation. For long‐term investors believing in the expansion of mobility accessories and helmet safety disciplines, this could be a worthy entrant — provided industry risks are acknowledged and execution remains disciplined.
