Studds IPO: Helmet-maker files DRHP for IPO, looks to renter D-Street after 7 years

Studds IPO: STUDDS Accessories Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

The firm submitted its draft documents after a span of seven years. The manufacturer of two-wheeler helmets aimed to raise ₹98 crore via a primary share issuance in 2018. Additionally, there was a component for an offer to sell up to 39.4 lakh shares. However, the proposal was not executed.

The company ranks as the largest player in the two-wheeler helmet market in India in terms of revenue for Fiscal 2023 and is also recognized as the world’s leading two-wheeler helmet manufacturer by volume for Calendar Year 2024, according to the CARE Report. With nearly fifty years of expertise, the firm is a well-established manufacturer. As of the date of this Draft Red Herring Prospectus (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 ‘SMK’ brand was introduced in 2016 and has been successfully marketed within India and exported to international markets, based on the CARE Report. As of December 31, 2024, both of the company’s brands, Studds and SMK, are marketed and sold in over 70 countries.

The company designs, manufactures, markets, and sells two-wheeler helmets under the ‘Studds’ and ‘SMK’ brands, along with various accessories (including two-wheeler luggage, gloves, helmet locking devices, rain suits, riding jackets, and eyewear) under the ‘Studds’ brand. Their products are available throughout India and in more than 70 countries globally, with major export destinations across the Americas, Asia (excluding India), Europe, and other regions.

Studds IPO Details

The proposed transaction will involve a complete stake sale, where the promoter group and other stakeholders plan to sell up to 77.9 lakh shares. The promoter shareholders participating in the sale include Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Chand Khurana.

According to the company's Draft Red Herring Prospectus (DRHP), the objectives of the Offer are (i) to conduct the Offer for Sale of up to 7,786,120 Equity Shares with a face value of ₹5 each by the Selling Shareholders, and (ii) to gain the advantages of having the Equity Shares listed on the Stock Exchanges. The company will not receive any funds from the Offer for Sale conducted by the Selling Shareholders. Each Selling Shareholder will receive their respective share of the sales proceeds after accounting for their portion of the related expenses and applicable taxes.

IIFL Capital Services Ltd and ICICI Securities Ltd are the main managers overseeing the transaction.

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