Studds Accessories IPO: Latest GMP Hints At Potential Listing Gain of Over 9% Ahead Of Oct. 30 Opening

Studds Accessories Ltd. is set to launch an initial public offering (IPO) to raise over Rs 450 crore from the primary market this week. It is a manufacturer of two-wheeler helmets and motorcycle accessories.

Ahead of the IPO launch, the grey market premium (GMP) indicated a potential listing gain of over 9% per share. Investors who want to bid for shares in the IPO must check the following details before making an investment call.

According to InvestorGain, the GMP for the Studds Accessories IPO stood at Rs 54 as of 12:00 p.m. on Oct. 28. The latest GMP indicates a listing price of Rs 639 apiece, a premium of 9.23% compared to the upper limit of the price band. 

Note: GMP does not represent official data and is based on speculation.

The Studds Accessories IPO is a book-building issue worth Rs 455.49 crore. The mainboard issue comprises entirely an offer-for-sale (OFS) of 78 lakh shares.

To participate in the IPO, retail investors need to bid for a single lot size of 25 shares, requiring an investment of Rs 14,625. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,04,750. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 69 lots, amounting to an investment of Rs 10,09,125.

The price band for the IPO has been set between Rs 557 and Rs 585 per share.

The subscription window for the IPO will remain open from Oct. 30 to Nov. 3. Studds Accessories Ltd. is expected to finalise the IPO share allotment status on Nov. 4. The company will transfer shares to the demat accounts of successful bidders on Nov. 6 and refunds to non-allottees will also be processed on the same day. 

Shares of the company are scheduled to be listed on the BSE and NSE on Nov. 7.

Qualified Institutional Buyers (QIBs) will be offered a maximum of 50% of the net offer. Retail investors will be allocated at least 35% of the net offer and the remaining 15% will be reserved for Non-Institutional Investors. 

IIFL Capital Services Ltd. is the book-running lead manager and MUFG Intime India Pvt. is the registrar of the issue.

The company will utilise proceeds from the IPO to achieve the benefits of listing the equity shares on the stock exchanges.

Studds Accessories is a manufacturer and exporter of helmets, motorcycle accessories and riding gear. It was established in 1983.

The company reported a 21.7% year-on-year (YoY) increase in profit after tax (PAT) at Rs 69.64 crore in FY25 from Rs 57.23 crore in FY24. Its revenue from operations rose 10.4% YoY to Rs 583.82 crore in FY25 from Rs 529.02 crore in the preceding financial year.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.