Studds Accessories IPO Makes Subdued Debut with 1.88% Decline, Lists at ₹574.00 Against Exceptional Subscription

Studds Accessories IPO India’s largest two-wheeler helmet manufacturer, made a subdued market debut on November 7, 2025, listing at ₹574.00 per share, down 1.88% from the issue price of ₹585.00. Incorporated in 1975 and headquartered in Faridabad, Haryana, the company designs, manufactures, and markets helmets under its “Studds” and “SMK” brands, along with two-wheeler accessories such as luggage, gloves, rain suits, riding jackets, eyewear, and helmet security products. With 19,258 SKUs and over 240 designs, Studds sold 7.40 million helmets in FY25, backed by four manufacturing facilities and a 75-member R&D team. 

Studds Accessories Limited Listing Details

The IPO was priced at ₹585 per share with a minimum lot size of 25 shares, requiring ₹14,625 per application. The issue received an overwhelming response, subscribed 73.25 times overall—QIBs led with 159.99 times, NIIs at 76.99 times (bNII 83.08 times and sNII 64.79 times), and retail at 22.08 times. This indicated robust institutional and retail confidence in Studds’ market leadership and strong brand equity, supported by ₹136.65 crore raised from anchor investors.

First-Day Trading Performance

Listing Price: Studds Accessories opened at ₹570.00 representing decline of 2.56% from issue price of ₹585.00, touched intraday high of ₹585.00 (flat) and low of ₹555.80 (down 4.99%), with VWAP at ₹573.07, delivering modest decline of 1.88% at ₹574.00 reflecting cautious market sentiment despite strong subscription and being entirely offer for sale.

Growth Drivers and Challenges

Growth Drivers:
Dominant Market Position: Studds holds a virtual monopoly in India’s helmet industry with its Studds and SMK brands, offering over 240 designs across 19,258 SKUs, ensuring a wide consumer base.

Global Presence: The company exports to over 70 countries across the Americas, Asia, and Europe, and manufactures helmets for international brands such as Jay Squared LLC’s “Daytona” and O’Neal.

Strong Financials: Revenue grew 11% year-on-year to ₹595.89 crore in FY25, and PAT increased 22% to ₹69.64 crore. ROE stood at 16.64%, ROCE at 20.25%, PAT margin at 11.93%, and EBITDA margin at 17.96%. The company maintained a net cash position with a negative debt-to-equity ratio of -0.07.

Challenges:
Subdued Listing: Despite record subscription levels, the stock closed down 1.88%, suggesting valuation concerns and limited post-listing gains.

Aggressive Valuation: Post-issue P/E of 28.43x and P/B of 5.12x appear fully priced, requiring sustained earnings growth to justify the premium.

No Fresh Capital: The IPO was entirely an offer for sale worth ₹455.49 crore, leading to promoter stake dilution from 78.78% to 61.76%, without any new capital infusion for expansion or working capital.

Utilisation of IPO Proceeds

The ₹455.49 crore raised through the offer for sale involved 77.86 lakh shares sold by promoters Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Shilpa Arora. The objective was to achieve the benefits of listing and provide liquidity to shareholders, with no proceeds allocated for business growth or expansion.

Financial Performance

Revenue: ₹595.89 crore for FY25, growth of 11% from ₹535.84 crore in FY24, reflecting steady demand for Studds and SMK brand helmets and accessories.

Net Profit: ₹69.64 crore in FY25, growth of 22% from ₹57.23 crore in FY24, demonstrating strong operational leverage.

Financial Metrics: Solid ROE of 16.64%, ROCE of 20.25%, negative debt-to-equity of -0.07, PAT margin of 11.93%, EBITDA margin of 17.96%, price-to-book of 5.12x, post-issue EPS of ₹20.58, P/E of 28.43x, and market capitalisation of ₹2,266.76 crore.