Studds Accessories
- Studds Accessories is coming out with a 100% book building; initial public offering (IPO) of 77,86,120 shares of 5 each in a price band Rs 557-585 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on October 30, 2025 and will close on November 3, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 5 and is priced 111.40 times of its face value on the lower side and 117.00 times on the higher side.
- Book running lead managers to the issue are IIFL Capital Services and ICICI Securities.
- Compliance Officer for the issue is Asha Mittal.
Profile of the company
Studds Accessories is the largest two-wheeler helmets player in India in terms of revenue in Fiscal 2024 and also the world’s largest two-wheeler helmet player by volume in Calendar Year 2024. It is an established manufacturer with nearly five decades of experience. As on March 31, 2025, its Manufacturing Facilities I, II and III have a combined annualised capacity of producing 9.04 million units. It sold around 7.40 million helmets in Fiscal 2025. Its ‘SMK’ brand was launched in 2016 and is being successfully sold in India and exported to overseas market. Both of its brands, namely, Studds and SMK, have been marketed and sold in more than 70 countries as of August 31, 2025.
It designs, manufactures, markets and sells two-wheeler helmets under the ‘Studds’ and ‘SMK’ brands and other accessories (such as two-wheeler luggage, gloves, helmet locking device, rain suits, riding jacket and eye wear) under its ‘Studds’ brand. Its products are sold Pan-India and in more than 70 countries internationally, with its key export markets situated across Americas, Asia (excluding India), Europe and rest of the world. It also manufactures helmets for Jay Squared LLC, which are sold under the “Daytona” brand in the United States of America, as well as for O’Neal under their branding, supplying to markets in Europe, United States of America and Australia.
The company is focused on capturing the opportunity for two-wheeler helmets globally which is estimated to grow at a CAGR of 5.10% in value terms between calendar year 2024 to calendar year 2029 primarily fuelled by increasing urbanization, rising disposable incomes, heightened safety awareness, and government regulations mandating helmet use. Safety remains the cornerstone of its product philosophy, driving its efforts to meet rigorous safety standards while ensuring style, design, utility and quality. It is focused on positioning SMK as an aspirational brand, that appeals to the safety-conscious preferences of its customers in India and globally, while also catering to diverse price points and design sensibilities.
Proceed is being used for:
- Carrying out the Offer for Sale of Equity Shares of face value of Rs 5 each by the Selling Shareholders
- Achieving the benefits of listing the Equity Shares on the Stock Exchanges
Industry Overview
India has shown various moderations across domains of economy, geopolitics, and environment in the last few years. Regarding the Indian automobile industry, the two-wheeler (2Ws) segment takes the largest chunk of the pie, with around 77% share of the total domestic sales volume. The two-wheeler industry has three sub-segments namely, Motorcycles, Scooters, and Mopeds. The two-wheeler industry experienced a robust domestic sales growth of 9.1% year-on-year in FY25 compared to FY24. With the introduction of new models and attractive promotional offers, demand increased, especially in rural areas, fostering improved market sentiments. This uptick in demand was accompanied by heightened customer walk-ins and an overall positive market response. Additionally, recently announced GST rate cuts on two-wheelers coupled with better stock availability compared to the previous year and a favourable reception to newly launched entry-level products have set an optimistic tone for the upcoming festive season.
The two-wheeler segment takes the largest chunk of the pie in the Indian automobile industry, with around 75% share in the total domestic sales volume. The two-wheeler (2W) industry has three segments namely, Motorcycles, Scooters, and Mopeds. The contribution of sales of motorcycles is the highest at 62% followed by scooters and mopeds at 35% and 3% in FY25 respectively. The two-wheeler domestic sales volume is expected to grow by 7-9% in FY26 after healthy growth in last 2 years with new model launches, upcoming festivals, wedding season, and ease in supplies of chips and semiconductors. the two-wheeler auto domestic sales are expected to grow with a CAGR of 5%-6% over the period of FY25-30. The growth is expected to be led by improving rural and urban demand and increasing demand for electric two-wheelers.
India is one of the largest two-wheeler helmet market. The Indian two-wheeler helmets market experienced a 4.4% CAGR in unit sales from CY19 to CY24, driven by factors such as growing urbanization, rising disposable incomes, increased safety awareness, and the enforcement of government regulations mandating helmet use. The market is anticipated to expand at a CAGR of 6.1% in volume and 8.7% in value between CY24 and CY29, owing to factors such as the market nearing saturation in urban areas, a slower pace of income growth, stable regulatory enforcement, and a shift in consumer focus from basic safety to higher-quality, feature-rich helmets. The mandatory helmet requirement for pillion riders could also lead to a notable increase in demand, resulting in more steady growth in the coming years. Additionally, inflationary pressures, growing consumer awareness of premium helmet brands, and a shift toward high-quality, certified helmets are expected to further drive price growth in the coming years. The premium helmet market is estimated to be around 7-8% of the total helmet market in value terms and this share is likely to grow to 10% by FY29.
Pros and strengths
Largest domestic player of two-wheeler helmets: The company is the largest two-wheeler helmets player in India in terms of revenue in Fiscal 2024 and also the world’s largest two-wheeler helmet player by volume in Calendar Year 2024. It is an established manufacturer with nearly five decades of experience. It sold around 7.40 million helmets in Fiscal 2025. Its strong market positions in the helmet and motorcycle accessories industry are a reflection of approximately five decades of industry experience, continuous product improvement development, focus on safety, quality and understanding the aspirational needs of its target customers. Over the last 50 years, it has developed the Studds brand as a trusted brand amongst its customers by focusing on incorporating the advanced head gear protection technology in its products and by ensuring compliance with stringent quality and safety standards.
Advanced manufacturing and D&D capabilities with vertically integrated operations: The company’s vertically integrated business model gives it the control over its processes from raw material procurement, design, production and marketing to distribution and sales and also its ability to respond to changing market trends and iterate prototypes with faster turnaround time, thereby reducing time to market and enabling faster product and design development cycles. The company has developed its manufacturing processes based on its nearly five decades of production experience and gradually created extensive vertical integration which has allowed it to have better control over the quality of its products. Its vertically integrated manufacturing processes such as production of expanded polystyrene liners (EPS Liners), in-house helmet liners stitching facility, in-house decal facility, in-house mold making shop and design centre and an in-house helmet testing laboratory, enable it to become cost efficient in relation to third party manufacturing and allows it to have greater control over quality and safety at each stage of the manufacturing process.
Strong Pan-India and global presence: The company sells its products primarily through its extensive distributor networks, OEMs, EBO’s, online retailers, quick commerce platforms, central stores department, central police canteen and institutional customers. During the nearly five decades of operations, it has developed a widespread distributor network in India and globally that has enabled it to serve customers in over 70 countries as of August 31, 2025. As of August 31, 2025, it had tie-ups with 363 active distributors in India and sold in key export markets situated across Americas, Asia (except India) for its export operations.
Capital efficient and sustainable business model: The company has a scalable business model which relies on its brand recall, its integrated operations and its distribution network. Its brand logos are prominently displayed on its products and each product sold by it enhances its brand visibility and recall, which allows it to undertake minimal advertising expenses. The synergies from its integrated operations help it in reducing its operating expenses and enable it to upscale its operations in an efficient and seamless manner. Its large distribution network, which includes its domestic distributors, importers and two-wheeler OEMs, allows it to expand its geographical reach without incurring significant capital expenditure. Further, most of the orders placed by its distributors are backed by weekly credits and all the orders placed by its importers are usually backed by advance payments or letter of credit, which allows it to have efficient working capital.
Risks and concerns
Dependent on certain raw material suppliers: The company procured significant portion of raw material from limited suppliers. The company has procured 20.83%, 19.85% and 14.03% of its raw material supply from top 10 suppliers in FY25, FY24 and FY23 respectively. Any disruption in their operations or the inability of such suppliers to supply the raw materials in the quantities it requires, may have an adverse effect on the company’s business, results of operations and financial condition.
Significant revenue comes from exports: The company’s business and financial performance is dependent on export sales of its products across its international markets (which was 21.74%, 16.63%, 10.06% and 13.60% for the three months ended June 30, 2025 and Fiscals 2025, 2024, and 2023, respectively). Any decrease in the demand for its products in these markets or an inability to increase or effectively manage its sales to such markets may adversely affect its business, financial condition and results of operations. Further, increase in the anti-dumping duties in such countries or the entry into free trade agreements with such countries may adversely affect its business, financial condition and results of operations.
Significant revenue comes from sale of products to OEMs and government customers: The company is dependent on sales to certain clients in the automotive segment inter-alia including Original Equipment Manufacturers (OEMs), Canteen Stores Department, Indian Naval Canteens, and the Central Police Canteens. The company has garnered 19.58%, 20.79% and 18.49% of its total revenue from sale of its products to OEMs and government customers in FY25, FY24 and FY23 respectively. The company cannot assure that it can maintain the historical levels of orders from these customers or that it will be able to find new customers in case it loses any of them. Further, major events affecting its customers, such as adverse market conditions, regulatory changes, adverse cash flows, change of management, mergers and acquisitions by customers could adversely affect its business.
Geographical constrain: The company operates four manufacturing facilities in Faridabad, Haryana, with a fifth manufacturing facility under construction in the same region. The company’s manufacturing facilities are concentrated in Faridabad, Haryana and events impacting this geographical area may disrupt its production and operations. Further, its manufacturing facilities are subject to operating risks, such as the breakdown or failure of equipment, power supply or processes, performance below expected levels of efficiency, obsolescence, labour disputes, natural disasters, industrial accidents, infectious diseases, political instability and the need to comply with the directives of relevant government authorities. Any disruption, breakdown or shutdown of its manufacturing facilities may have a material adverse effect on its business, financial condition, results of operations and cash flows.
Outlook
Studds Accessories is a manufacturer of two-wheeler helmets and motorcycle accessories based in Faridabad, Haryana. The company designs, manufactures, markets, and sells helmets under the “Studds” and “SMK” brands, while other accessories are sold under the “Studds” brand. The company distributes its products across India and exports to over 70 countries, including markets in the Americas, Asia (excluding India), Europe, and other regions. On the concern side, the sale of two-wheeler helmets manufactured by the company contributes a significant portion to total sales and any decrease in motorcycle sales could have an adverse effect on its business, cash flows, results of operation and financial position. Moreover, its continued operations at its manufacturing facilities are critical to its business and any disruption, breakdown or shutdown of its manufacturing facilities may have a material adverse effect on its business, financial condition, results of operations and cash flows.
The issue has been offering 77,86,120 shares in a price band of Rs 557-585 per equity share. The aggregate size of the offer is around Rs 433.69 crore to Rs 455.49 crore based on lower and upper price band respectively. Minimum application is to be made for 25 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased 10.36% from Rs 5,290.23 million for Fiscal 2024 to Rs 5,838.16 million for Fiscal 2025. Moreover, the company’s profit for the year was Rs 696.41 million for Fiscal 2025 compared to Rs 572.26 million for Fiscal 2024.
The company is an established manufacturer with nearly five decades of experience It sells its products in more than 70 countries as of August 31, 2025. Its Manufacturing Facilities I, II and III are fully equipped with automated silicon hard coating facility for visors, sputtering and metalizing technologies available for coating visors, in-house helmet liners stitching facility, conveyorized assembly line, in-house mold making shop and design center, in house painting lines, automated fabric cutting lines and stitching lines and an in-house helmet testing laboratory certified by Vehicle Certification Agency, England (VCA). Additionally, Manufacturing Facility IV produces Expanded Polystyrene Liners (EPS Liners) and water transfer decals used for captive consumption in Manufacturing Facilities I, II and III. Its large manufacturing facilities enable it to achieve economies of scale resulting in decreased cost of production per manufacturing facilities.
