Helmet Manufacturer Seeks Public Listing After Previous Delay
Studds Accessories, India’s largest two-wheeler helmet manufacturer by revenue, has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), reviving its initial public offering (IPO) plans. This move comes after an earlier attempt in 2018, when the company had proposed a fresh issue of shares worth ₹98 crore and an offer for sale (OFS) of up to 39.4 lakh shares, but did not proceed with the listing.
The IPO will be an Offer For Sale (OFS) of up to 77.9 lakh shares by existing shareholders and promoters.
Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Chand Khurana will offload significant portions of their stakes.
IIFL Capital and ICICI Securities have been appointed as the lead managers for the IPO.
Breakdown of Shareholder Stake Sale
Under the latest IPO filing, Studds’ existing promoters and shareholders will be selling shares, meaning no fresh capital will be raised by the company.
Madhu Bhushan Khurana will sell around 38 lakh shares.
Sidhartha Bhushan Khurana will offload approximately 8 lakh shares.
Chand Khurana will divest around 21 lakh shares.
The remaining shares will be sold by other existing shareholders.
Currently, the Khurana family holds a majority stake in Studds Accessories, with Madhu Khurana owning 37.95%, Sidhartha Khurana holding 31.79%, and Chand Khurana controlling 8.35%.
Studds’ Market Dominance and Production Capabilities
Studds Accessories is not only India’s largest helmet manufacturer by revenue but also the world’s largest in terms of production volume. The company has been in operation for nearly 50 years, establishing itself as a key player in the global helmet market.
Studds operates three manufacturing facilities with a combined annual production capacity of 90.4 lakh helmets.
In FY24, the company sold 71 lakh helmets, reflecting strong demand both in India and international markets.
A fourth production facility is currently under construction, which is expected to further expand manufacturing capacity.
Diverse Product Portfolio and Global Presence
Studds manufactures helmets under two primary brands – Studds and SMK – catering to different market segments.
Studds: Focuses on the mass-market segment with affordable and durable helmets.
SMK: A premium brand launched in 2016, aimed at international customers. SMK helmets are marketed globally, with sales in over 70 countries, including the Americas, Europe, and Asia.
In addition to helmets, Studds also manufactures and sells motorcycle accessories, such as:
Luggage solutions
Protective gloves
Rain suits
Eyewear
The company also manufactures helmets for international brands, including Daytona (USA) and O’Neal (USA, Europe, and Australia), expanding its global footprint.
Financial Performance and Growth Trajectory
Studds has reported strong financial performance in FY24, with revenue and profitability improving significantly compared to the previous fiscal year.
FY24 revenue stood at ₹529.02 crore, an increase from ₹499.17 crore in FY23.
Net profit surged to ₹57.23 crore, compared to ₹33.15 crore in the previous fiscal year.
EBITDA margin rose to 17.05% in FY24, up from 12.03% in FY23, indicating improved operational efficiency and profitability.
The rise in revenue and profits suggests growing demand for high-quality helmets as safety awareness and two-wheeler sales increase in India and abroad.
Outlook for Studds’ IPO and Industry Prospects
With the re-emergence of its IPO plans, Studds Accessories is looking to leverage its industry leadership and strong financial performance to attract investors.
The global demand for helmets and two-wheeler safety gear is expected to grow steadily, driven by stringent safety regulations and increasing awareness.
The Indian two-wheeler market remains robust, presenting Studds with significant growth opportunities domestically.
International expansion through exports and premium offerings under SMK will continue to be a key growth driver for the company.
The IPO, once approved by SEBI, will provide existing investors an opportunity to monetize their holdings, while offering new investors a stake in one of the world’s largest helmet manufacturers.
