Upcoming IPO! STUDDS receives green signal from Sebi to go public; details

From the promoters group, Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Chand Khurana are divesting up to 6.7 million shares, while other shareholders are divesting up to 1.08 million shares

Upcoming IPO: Leading two-wheeler helmet manufacturer STUDDS Accessories is all set to go public, having received the green light from the market regulator, the Securities and Exchange Board of India (Sebi), for its long-awaited Initial Public Offering (IPO).  The company initially submitted its draft papers to the markets regulator in 2018. However, the proposal was not executed at that time. Now, STUDDS has received Sebi’s approval for its Draft Red Herring Prospectus (DRHP), which was submitted in March this year.

STUDDS Accessories IPO details

The public offering comprises an entirely Offer for Sale (OFS) of up to 7.78 million equity shares. From the promoters group, Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Chand Khurana are divesting up to 6.7 million equity shares, while other shareholders are divesting up to 1.08 million equity shares of the company through the public issue.  The equity shares offered through the DRHP are proposed to be listed on the BSE and the National Stock Exchange of India (NSE).

 

MUFG Intime India (formerly Link Intime India) is the registrar of the offer, while IIFL Capital Services and ICICI Securities are the book running lead managers.

 

The price band and the minimum bid lot, the company said, will be decided in accordance with applicable laws and in consultation with the book running lead managers.

 

STUDDS Accessories will not receive any proceeds of the Offer for Sale by the selling shareholders. "Each of the selling shareholders will be entitled to the respective proportion of the proceeds of the OFS after deducting their portion of the offer-related expenses and the relevant taxes thereon," reads the DRHP.

About STUDDS Accessories

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 devices, rain suits, riding jackets, and eyewear) under the ‘Studds’ brand. The company is the largest two-wheeler helmet player in India in terms of revenue in Fiscal 2023 and also the world’s largest two-wheeler helmet player by volume in Calendar Year 2024. (Source: CARE Report). The company’s products are sold pan-India and in more than 70 countries internationally, with key export markets situated across the Americas, Asia (excluding India), Europe, and the rest of the world.

 

For the six-month period ended September 30, 2024, the company reported revenue from operations of ₹285.31 crore and a net profit of ₹33.24 crore. In the fiscal year 2023–24 (FY24), STUDDS Accessories reported revenue from operations of ₹1,665.1 crore and a net profit of ₹57.22 crore.