Studds IPO: Helmet-maker files DRHP for IPO, looks to renter D-Street after 7 years
Studds Accessories Ltd., a leading global and Indian two-wheeler helmet manufacturer by volume in Calendar Year 2024, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). This marks the company's second attempt at a market debut after a seven-year gap. The company aims to raise ₹98 crore through this IPO.
The proposed transaction involves a complete offer for sale (OFS), where the promoter group and other stakeholders plan to sell up to 77.9 lakh shares. Studds will not receive any funds from this sale.
Studds is recognized as the world's leading two-wheeler helmet manufacturer by volume. As of March 26, 2025, the firm's Manufacturing Facilities I, II, and III collectively have an annual production capacity of 9.04 million units. In Fiscal 2024, the company sold approximately 7.10 million helmets. The company markets and sells its products under the 'Studds' and 'SMK' brands in over 70 countries.
Financial Performance Highlights (FY24):
- Total Revenue: ₹536 crore (5.9% increase from ₹506 crore in FY23)
- Profit After Tax (PAT): ₹57 crore (72.7% increase from ₹33 crore in FY23)
- Earnings Per Share (EPS): ₹29.08
- Net Worth: ₹387 crore
- Cash flow from operations: ₹965.04 million
- Current ratio: 2.05
- Net debt-equity ratio: 0.02
- Return on Equity (ROE): 15.78%
The company's manufacturing facilities are located in Faridabad, Haryana.
IIFL Capital Services Ltd. and ICICI Securities Ltd. are the lead managers overseeing the IPO.