Author: Dev Patel | EQMint | IPO News
Mumbai, October 30 — The initial public offering (IPO) of Studds Accessories Ltd, India’s largest manufacturer of two-wheeler helmets and a global leader by volume, witnessed a strong opening on Thursday. On the very first day of bidding, the issue was subscribed 1.54 times, reflecting solid investor interest despite volatile market conditions and mixed signals from the grey market.
The ₹455 crore IPO, entirely an Offer for Sale (OFS) by promoters and existing shareholders, will remain open for subscription until November 3. The company had earlier raised ₹137 crore from anchor investors on Wednesday, setting the stage for a well-received opening.
Strong Opening Response
According to stock exchange data, the IPO garnered bids for 1.54 times its offered shares by Thursday evening. The retail investor portion saw the highest traction, followed by non-institutional and qualified institutional buyers (QIBs).
The price band for the issue has been set between ₹557 and ₹585 per share, valuing the company at approximately ₹2,300 crore at the upper end. The subscription momentum indicates investor faith in Studds’ market leadership and long-standing brand reputation, though analysts are cautious about near-term valuations.
Grey Market Premium Narrows to ₹63
As of Thursday, the grey market premium (GMP) for the Studds Accessories IPO stood at ₹63 per share, suggesting an estimated listing price of around ₹648 — a 10.77% premium over the issue’s upper price band.
However, the GMP trend has shown some moderation over recent sessions. The premium had touched a high of ₹85 earlier in the week but has gradually declined to the current level. Market watchers note that this indicates a more conservative sentiment among informal traders, with volatility driven by broader market conditions and investor risk appetite.
The grey market, while unofficial, is often viewed as a leading indicator of demand. In this case, it reflects a cautious yet positive outlook, implying that the IPO could list at a modest premium if subscription momentum sustains through closing day.
Company Overview: A Market Leader in Motion
Founded in 1975, Studds Accessories Ltd is a pioneer in the Indian helmet and two-wheeler accessories segment. The company designs, manufactures, and markets a wide range of products under two key brands — ‘Studds’, which targets the mass and mid-market segments, and ‘SMK’, catering to premium motorcycle enthusiasts.
Studds’ product portfolio spans helmets, riding jackets, gloves, luggage, rain suits, eyewear, and safety accessories. It also supplies helmets to major motorcycle original equipment manufacturers (OEMs) including Hero MotoCorp, Honda Cars India, Suzuki Motorcycle India, Eicher Motors (Royal Enfield), and India Yamaha Motor.
With three fully operational manufacturing facilities and a fourth one expanding capacity, Studds currently boasts an annual production capability of 9.04 million units. The company sold 7.4 million helmets in FY2025 and exports to over 70 countries, making it one of the most recognized Indian brands in the global two-wheeler accessories space. A fifth facility is expected to be commissioned by the end of the year, further strengthening its production capabilities.
Financials and Growth Outlook
Studds’ financials present a picture of steady growth supported by operational resilience and strong brand equity. According to reports, the company posted a profit after tax of ₹70 crore for FY2025, with a cash reserve of ₹63 crore, highlighting healthy liquidity levels.
While its topline growth for FY2026 is projected at a modest 2.1%, analysts remain optimistic about margin improvement driven by premiumization, export expansion, and stricter safety regulations. The company’s leadership in India’s rapidly evolving helmet market — coupled with a 21% CAGR in export sales — underscores its long-term growth potential.
At the upper end of the price band, Studds’ IPO values the company at a price-to-earnings (P/E) multiple of 28.5x based on annualized FY26 earnings. Post-issue, the market capitalization is expected to touch ₹2,302 crore.
Analyst Sentiment: “Subscribe – Long Term”
Brokerage houses have largely given the IPO a “Subscribe” or “Subscribe – Long Term” rating, emphasizing Studds’ leadership position and brand strength while advising caution on valuations.
According to Canara Bank Securities, Studds’ dominance in the Indian market, coupled with strong OEM partnerships and increasing export penetration, supports a long-term growth thesis. The brokerage noted that rising global safety norms and India’s tightening helmet regulations will drive sustained demand for certified protective gear. It added that while current EBITDA margins remain below pre-COVID levels, the company’s improving product mix and operational scale should bolster profitability over the next few years.
Similarly, Anand Rathi Research highlighted Studds’ robust distribution network, consistent product quality, and global certifications as key competitive advantages. The firm believes the IPO is fully valued but offers strong long-term potential given the company’s focus on innovation, exports, and premiumization through the SMK brand.
Offer Structure and Key Details
The ₹455 crore IPO consists solely of an Offer for Sale (OFS) of 77.86 lakh shares by the promoter group and other existing shareholders. This means that no fresh capital will flow into the company; instead, proceeds will go entirely to the selling shareholders.
The issue is being managed by IIFL Capital Services Ltd as the book-running lead manager, while MUFG Intime India Pvt. Ltd serves as the registrar to the offer.
Industry Context: A Helmet Market Poised for Growth
India’s two-wheeler population continues to expand, with rising consumer awareness about road safety driving helmet adoption. The implementation of stricter government regulations mandating BIS-certified helmets has also boosted demand for branded, quality-certified products.
Globally, the motorcycle accessories market is projected to grow at over 6% CAGR, supported by increased demand for premium protective gear and the rising popularity of adventure and touring motorcycles. Studds, with its dual-brand strategy, stands well-positioned to capture both mass and premium segments in this expanding market.
What Lies Ahead
While short-term listing gains may be moderate given current grey market trends, analysts believe Studds offers a compelling long-term play in India’s automotive safety ecosystem. With a strong domestic presence, growing international footprint, and focus on premiumization, the company’s fundamentals remain sound.
However, investors should note that as a pure OFS, the IPO proceeds won’t contribute to new expansion projects or debt reduction. The near-term valuation, at 28.5x earnings, leaves limited room for error if growth moderates.
Still, with a proven track record, scalable business model, and deep-rooted brand equity, Studds Accessories stands as a symbol of India’s evolving manufacturing excellence — blending safety, innovation, and consumer trust.
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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.
