Studds Accessories IPO fully subscribed on opening day; what we know so far

Studds Accessories IPO: The initial public offering of helmet manufacturer Studds Accessories has been fully subscribed on the opening day on Thursday, October 30.

The initial share sale has secured bids for 67,96,375 shares as against 54,50,284 shares on offer, translating to 1.25 times subscription, according to the NSE data until 3:48 pm.

The ₹455.49 crore, which will conclude on November 3, has set a price band of ₹557-₹585 per share, valuing it at around ₹2,300 crore at the upper end of the range. A lot consists of 25 shares.

The IPO will comprise only an offer for sale (OFS), with the promoter group and other shareholders offloading 77.86 lakh shares.

Since the issue is entirely an OFS, Studds will not receive any proceeds, and all funds will go to the selling shareholders.

Before the IPO, the company raised ₹136.64 crore from anchor investors, including HDFC Mutual Fund (MF), ICICI Prudential MF, Edelweiss MF, ITI MF, Nippon India MF, Kedaraa Capital Public Markets Fund I, Pinebridge India Equity Fund, Carnelian India Amritkaal Fund and Edelweiss Life Insurance Company.

Studds Accessories has finalised the allocation of 23,35,836 equity shares to anchor investors at ₹585 per share.

Out of the total anchor allocation, 18,55,346 equity shares, or 79.43% of the total, were allotted to six domestic mutual funds across 10 schemes, collectively amounting to about ₹108.37 crore.

Founded in 1975, Studds designs, manufactures, markets, and sells two-wheeler helmets under the 'Studds' and 'SMK' brands, as well as a range of motorcycle accessories, including luggage, gloves, rain suits, riding jackets, eyewear, and helmet locks.

While Studds caters to the mass and mid-market segments, SMK, launched in 2016, targets premium motorcyclists.

The company's products are sold across India and exported to over 70 countries, with key markets spanning the Americas, Asia (excluding India), Europe, and other regions. It also manufactures helmets for international brands such as Jay Squared LLC (sold under the Daytona brand in the United States) and O'Neal, which are distributed across Europe, the US, and Australia.

The company supplies products to leading motorcycle OEMs, including Hero MotoCorp, Honda Cars India, Suzuki Motorcycle India, Eicher Motors (Royal Enfield), and India Yamaha Motor.

It also caters to government and institutional buyers, such as the Central Police Canteens and the Canteen Stores Department.

The public issue will be managed by IIFL Capital Services and ICICI Securities, with shares expected to list on the stock exchanges on November 7.

Studds Accessories IPO GMP