Helmet maker Studds Accessories files preliminary IPO papers with Sebi

Helmets manufacturer Studds Accessories has filed preliminary papers with capital markets regulator Sebi to float an initial public offering (IPO).

This marks the company's second attempt to go public. Previously, the company had filed draft papers nearly seven years ago.

The IPO will be an offer for sale (OFS), with the promoter group and other shareholders selling 77.9 lakh shares, according to the draft red herring prospectus (DRHP) filed on Wednesday.

Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholders. 

Studds Accessories designs, manufactures, markets and sells two-wheeler helmets under the 'Studds' and 'SMK' brands and other accessories such as two-wheeler luggage, gloves, helmet locking device, rain suits, riding jacket and eye wear under the 'Studds' brand.

The products are sold pan-India and in more than 70 countries, with key export markets situated across Americas, Asia (excluding India), Europe and rest of the world.

It also manufactures helmets for Jay Squared LLC, which are sold under the "Daytona" brand in the US, as well as for O'Neal under their branding, supplying to markets in Europe, the US and Australia.

On the financial front, the company reported a revenue from operations at Rs 285 crore, and a net profit of Rs 33 crore for the six months ended September 2024.

IIFL Capital Services and ICICI Securities are the lead managers for the public issue.

Studds Accessories had initially filed its draft papers with the markets regulator in August 2018. While it obtained Sebi's approval in December 2018, the company ultimately did not proceed with the IPO at that time.