Studds Accessories IPO Overview
World’s largest helmet maker by volume raising ₹455.49 cr via 100% OFS of 77.86L shares. Price: ₹557-585. Min lot: 25 shares (₹14,625). No fresh issue – proceeds to promoters/investors. 27.3% market share (India), 7.4M units sold FY25. Listing: BSE/NSE Nov 7. Lead: IIFL Capital, ICICI Sec. Debt-free. OEM: Hero, Honda, Royal Enfield.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | Mainboard |
| IPO Open Date | 30 October 2025 (Thursday) |
| IPO Close Date | 3 November 2025 (Monday) |
| Anchor Investor Bidding | 29 October 2025 (Wednesday) |
| Allotment Date | 4 November 2025 (Tuesday) – Expected |
| Credit to Demat | 6 November 2025 (Thursday) – Expected |
| Refund Initiation | 6 November 2025 (Thursday) – Expected |
| Listing Date | 7 November 2025 (Friday) – Tentative |
| Price Band | ₹557 – ₹585 per share |
| Face Value | ₹5 per share |
| Lot Size | 25 shares |
| Min Investment (Retail) | ₹14,625 (1 lot of 25 shares at upper band) |
| sHNI Investment | ₹2,04,750 (14 lots / 350 shares) |
| bHNI Investment | ₹10,09,125 (69 lots / 1,725 shares) |
| Issue Size | ₹455.49 crore total |
| Fresh Issue | NIL |
| Offer for Sale (OFS) | ₹455.49 crore (100% OFS) |
| Total Shares Offered | 77,86,120 equity shares |
| Listing | BSE & NSE (Mainboard) |
| Post-Issue Market Cap | ₹2,302.17 crore (at upper price band) |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers) | Up to 50% of Net Offer |
| NII (Non-Institutional Investors) | Not less than 15% of Net Offer |
| Retail Individual Investors | Not less than 35% of Net Offer |
Selling Shareholders (OFS Contributors)
Total OFS: 77,86,120 shares
Promoters:
- Madhu Bhushan Khurana
- Sidhartha Bhushan Khurana
- Chand Khurana
Investors:
- Sanjay Leekha
- Charu Leekha
- Nisha Leekha
- Nain Tara Mehta
- SE Shoes
- Sunil Kumar Rastogi
- Ajay Kumar Sakhuja
Important Note: This is a 100% Offer for Sale. The company will NOT receive ANY proceeds from the IPO. All money goes to existing promoters and investors who are exiting/reducing stakes.
Objects of the Issue
Since this is purely an OFS:
- Entire proceeds (₹455.49 crore) will go to selling shareholders
- Company receives ZERO funds for business operations, expansion, or debt repayment
- Purpose is to provide exit/liquidity to existing promoters and investors
- No capital infusion for 5th manufacturing facility or working capital
- Benefits for company: Listing status, enhanced brand visibility, future fundraising capability
Lead Managers & Registrar
Book Running Lead Managers (BRLMs):
- IIFL Capital Services Limited
- ICICI Securities Limited
Registrar:
- MUFG Intime India Private Limited (Link Intime India Private Limited)
- Address: C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai – 400 083
- Phone: +91-22-4918 6270 / +91-22-4918 6000
- Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html
Promoters & Management
Key Promoters:
- Madhu Bhushan Khurana (Selling shareholder)
- Sidhartha Bhushan Khurana (Selling shareholder)
- Chand Khurana (Selling shareholder)
Company Contact:
- Registered Office: 401, 4th Floor, Aggarwal Tower, Rajendra Place, New Delhi – 110 008
- Corporate Office: Plot No. 96, Sector 27-A, Faridabad, Haryana – 121 003
- Phone: +91-129-4014400
- Email: [email protected]
- Website: www.studds.com
STUDDS ACCESSORIES LIMITED – COMPANY OVERVIEW
Establishment & Background:
- Incorporated in 1983 (brand “Studds” launched in 1975)
- Industry: Two-Wheeler Helmets & Motorcycle Accessories Manufacturing
- Headquarters: Faridabad, Haryana
- Legacy spanning 50 years in helmet manufacturing
- Recognized as world’s largest two-wheeler helmet manufacturer by volume in CY2024
Business Model:
- Design, manufacture, market, and sell two-wheeler helmets and motorcycle accessories
- Two primary brands catering to different market segments:
- Studds (launched 1975) – Mass and mid-market segment
- SMK (launched 2016) – Premium and performance segment
- Product portfolio includes helmets, motorcycle luggage, gloves, helmet locking devices, rain suits, riding jackets, and eyewear
- B2B and B2C business model serving retail customers, OEM partners, and export markets
- White-label manufacturing for international brands like “Daytona” (USA) and “O’Neal” (Europe/US/Australia)
Market Position:
- India’s largest two-wheeler helmet manufacturer by revenue in FY24
- World’s largest two-wheeler helmet manufacturer by volume in CY24 (CARE Report)
- Market share of 27.3% by volume and 25.5% by value in India (FY24)
- Sold approximately 7.40 million helmets in FY25
- Exports to over 70 countries across Americas, Asia, Europe, and other regions
Operations:
- 4 manufacturing facilities in Faridabad, Haryana with combined annual capacity of 9.04 million units
- 5th facility under construction (expected FY26)
- Vertically integrated manufacturing: EPS liner production, in-house stitching, decal facility, mould shop, design centre, testing labs
- 363 active distributors as of August 31, 2025
- 3,000+ retail outlets across India
- Over 240 helmet designs across 19,258 SKUs
- OEM partnerships with Honda, Hero MotoCorp, Suzuki, Royal Enfield (Eicher Motors), and Yamaha
- Three third-party logistics partners in Faridabad, Bangalore, and United States
Company Strengths
- Dominant Market Leadership & Scale:
- World’s largest helmet manufacturer by volume (CY24)
- India’s largest by revenue (FY24) with 27.3% volume market share
- 50-year legacy creating strong brand equity and customer trust
- Sold 7.40 million helmets in FY25 demonstrating massive scale
- Market leadership provides pricing power and distribution advantages
- Dual Brand Strategy Covering All Segments:
- “Studds” brand for mass/mid-market maximizing volume and accessibility
- “SMK” brand for premium segment capturing higher margins
- Complementary positioning eliminates brand cannibalization
- Over 240 designs across both brands catering to diverse consumer preferences
- Premium brand (SMK) includes advanced products like carbon-fibre helmets and Bluetooth-enabled smart helmets
- Vertically Integrated Manufacturing Excellence:
- Complete control from raw material to finished product
- EPS liner production, in-house stitching, mould-making, design centre, testing labs
- Advanced automation: robotic painting, conveyorised assembly, silicon hard coating, sputtering/metalising
- Manufacturing capacity of 9.04 million units annually (expanding to higher with 5th facility)
- Vertical integration ensures quality control, cost efficiency, and faster time-to-market
- Strong R&D and Innovation Capabilities:
- 75-member R&D and engineering team
- In-house testing laboratory meeting industry standards
- Continuous product innovation: IoT-based smart helmets, aerodynamic designs
- Capability to manufacture premium products (carbon-fibre, Bluetooth-enabled)
- Quick prototyping and product development cycle
- Robust Export Presence & Global Partnerships:
- Exports to 70+ countries across 5 continents
- Exports contributed 19.07% of helmet sales
- White-label manufacturing for international brands (Daytona, O’Neal)
- Multiple international certifications: ECE (Europe), DOT (USA), Philippine Standard, SNI (Indonesia)
- Diversified geographic revenue reducing domestic market dependency
- Strong OEM Relationships:
- Partnerships with leading two-wheeler manufacturers: Honda, Hero, Suzuki, Royal Enfield, Yamaha
- OEM sales contributed 11.81% of revenue (Q1 FY26)
- B2B relationships provide stable demand and credibility
- OEM tie-ups validate product quality and safety standards
- Extensive Distribution Network:
- 363 active distributors across India
- 3,000+ retail touchpoints
- Pan-India presence ensuring market penetration
- Three logistics partners for efficient supply chain
- Multi-channel distribution: retail, OEM, export, e-commerce
- Healthy Financial Performance:
- Revenue CAGR of 8% (FY23-FY25)
- EBITDA CAGR of 32% (FY23-FY25)
- PAT CAGR of 45% (FY23-FY25)
- EBITDA margin improved from 11.7% (FY23) to 17.9% (FY25)
- ROCE increased from 11.7% (FY23) to 20.25% (FY25)
- Debt-free balance sheet indicating financial prudence
- Funding growth through internal accruals
- Industry Tailwinds:
- Rising road safety awareness in India
- Stricter traffic enforcement and helmet regulations
- Recent GST rationalization supporting industry
- Low helmet penetration (below 60%) offering growth runway
- Growing two-wheeler population in India and emerging markets
Key Risks & Challenges
- Extreme Product Concentration – Helmet Dependency:
- 92.81% of revenue from helmet sales alone (Q1 FY26)
- 92.43% in FY25 from helmets
- Accessories only contribute 6.98-7.29% of revenue
- Any decline in two-wheeler sales directly impacts business
- Limited product diversification creates vulnerability
- Complete Geographic Concentration of Manufacturing:
- ALL manufacturing facilities located in Faridabad, Haryana (single city)
- 5th facility also being built in same location
- Regional disruptions (strikes, natural disasters, infrastructure issues) can halt entire production
- Single-point failure risk for complete operations
- Lack of geographic diversification in manufacturing base
- Two-Wheeler Industry Cyclicality:
- Business performance directly tied to two-wheeler sales trends
- Economic slowdowns reduce discretionary spending on vehicles
- Rising EV adoption may shift helmet preferences and regulations
- Seasonal variations in two-wheeler purchases
- Fuel price volatility affecting two-wheeler demand
- Intense Competition in Fragmented Market:
- Key competitors: Steelbird Hi-Tech, Vega Auto Accessories
- Numerous unorganized players offering price competition
- Low entry barriers in basic helmet manufacturing
- Competition from international brands in premium segment
- Price sensitivity in mass market limiting premium realization
- 100% Offer for Sale – No Fresh Capital:
- Entire ₹455.49 crore proceeds go to existing shareholders
- Company receives ZERO funds for expansion, capex, or working capital
- Indicates promoter/investor exit rather than growth funding
- 5th manufacturing facility expansion will need separate funding
- IPO does not strengthen company’s balance sheet
- Regulatory and Certification Dependencies:
- Required to obtain/renew multiple certifications: BIS (India), ECE (Europe), DOT (USA), Philippine Standard, SNI (Indonesia)
- Withholding or delay of certifications can disrupt sales
- Evolving safety standards require continuous compliance investments
- International export dependent on meeting varying country-specific norms
- Certification failures can trigger product recalls
- Operational Risks from Manufacturing:
- Labor-intensive operations vulnerable to strikes and work stoppages
- Wage inflation impacting cost structure
- Potential quality control lapses leading to recalls and liability claims
- Underutilization of expanded capacity affecting profitability
- Automation investments requiring significant capital
- Brand Dependency Risk:
- Heavy reliance on “Studds” and “SMK” brand equity
- Loss of brand reputation from quality issues or negative publicity can severely impact sales
- Brand dilution from counterfeits or unauthorized use
- Need for continuous marketing spend to maintain brand salience
- Export Market Risks:
- 19% of helmet sales from exports vulnerable to:
- Currency fluctuations affecting profitability
- Changes in international trade policies or tariffs
- Compliance with evolving international safety standards
- Competition from local manufacturers in export markets
- Geopolitical tensions disrupting trade flows
- 19% of helmet sales from exports vulnerable to:
- Limited Peer Comparability:
- No directly comparable listed peers in India or globally
- Difficult to benchmark valuation and operational performance
- Steelbird and Vega are unlisted
- Makes investment decision-making challenging for investors
- Acquisition Integration Risk:
- Recent acquisition of Bikerz US Inc. may not deliver expected benefits
- Integration challenges with international operations
- Cultural and operational differences
- Potential goodwill impairment if acquisition underperforms
- Capacity Utilization Concerns:
- Current capacity: 9.04 million units
- FY25 sales: 7.40 million units (82% utilization)
- 5th facility expansion may lead to underutilization
- Excess capacity can pressure margins and ROI
- Growth dependent on demand acceleration
Financial Performance Overview (₹ in Crore)
| Particulars | FY 2023 | FY 2024 | FY 2025 |
| Revenue (₹ crore) | 499.17 | 529.02 | 583.82 |
| Profit (₹ crore) | 33.15 | 57.23 | 69.64 |
| Total Assets (₹ crore) | 461.07 | 485.56 | 556.70 |
Revenue Analysis
- FY 2023 to FY 2024: Revenue increased from ₹499.17 crore to ₹529.02 crore — a growth of 5.97%.
- FY 2024 to FY 2025: Revenue rose further to ₹583.82 crore — a growth of 10.35%.
The steady rise in revenue shows strong business momentum and better operational performance, indicating higher demand and improved sales efficiency.
Profit Analysis
- FY 2023 to FY 2024: Profit jumped from ₹33.15 crore to ₹57.23 crore — a massive growth of 72.66%.
- FY 2024 to FY 2025: Profit rose again to ₹69.64 crore — a growth of 21.63%.
The profit growth rate is much higher than revenue growth, suggesting better cost management, margin improvement, and possibly higher realization per unit.
Total Assets Analysis
- FY 2023 to FY 2024: Total assets grew from ₹461.07 crore to ₹485.56 crore — an increase of 5.31%.
- FY 2024 to FY 2025: Assets further expanded to ₹556.70 crore — a growth of 14.65%.
The increase in assets indicates continuous investment in expansion, modernization, or new projects, strengthening the company’s long-term position.
Disclaimer:
The above IPO analysis and financial data are based on information provided by the company in its official documents. For complete details, please refer to the Red Herring Prospectus (RHP) linked above. Investors are strongly advised to consult their financial advisor before making any investment decisions.
