Studds Accessories gets Sebi's go-ahead for IPO

Studds Accessories Ltd, manufacturer of helmets and two-wheeler accessories, has received markets regulator Sebi's approval to float an initial share sale.

The company, which had filed its draft papers with the markets regulator in August seeking its clearance for the initial public offer (IPO), obtained Sebi's observations on December 14, latest data with the capital markets watchdog showed.

Sebi's observations are necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.

Studds Accessories' IPO comprises fresh issuance of shares worth Rs 98 crore besides an offer for sale of 39.39 lakh equity shares by promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana, and other existing shareholders, according to the draft papers.

Proceeds of the issue will be used to part-finance the motorcycle helmet, two-wheeler accessories, bicycle helmet manufacturing facilities in Faridabad, and for general corporate purposes.

The company believes that listing of the equity shares will also enhance its visibility and brand image among existing and potential customers.

Edelweiss Financial Services and IIFL Holdings will manage the company's public issue.