Studds Accessories IPO Opens For Subscription Today: 10 Key Things To Know Before You Bid — Anand Rathi Report

The domestic manufacturer and seller of two-wheeler helmets in India, Studds Accessories has set the price band in the range of Rs 557–585 per equity share..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Here are the 10 things to know before investing.1. Studds Accessories Ltd. launched its initial public offering today and will conclude on Nov. 03. 2. The domestic manufacturer and seller of two-wheeler helmets in India has set the price band in the range of Rs 557–585 per equity share. 3. Investors can place bids starting from a minimum of 25 shares and in multiples thereafter.4. The company is raising Rs 455.5 -crore through an offer for sale of 77.9 lakh equity shares. 5. Studds Accessories' IPO is an offer for sale with no fresh issuance.6. IIFL Capital Services Ltd. and ICICI Securities Ltd. are the book-running lead managers for the Studds Accessories IPO while MUFG Intime India Pvt. Ltd. is the registrar to the offer.7. Strengths: Largest domestic player of two-wheeler helmets. Advanced manufacturing and D&D capabilities with vertically integrated operations.Strong pan-India and global presence supported by an extensive and well-developed sales and distribution network and major quality accreditations.8. Key Strategies: Expand and strengthen the production capacity and deepen their vertical integration.Strategically expand into new markets and geographies. Increase their offering in the premium helmet segment in the Studds and SMK brand.Expand the product portfolio. Increase focus on domestic online sales channel. 9. Key Risk:The sales of their products will suffer if they are unable to maintain and/ or enhance the ‘Studds’ and ‘SMK’ brands, which would have a material adverse effect on the business, financial condition, results of operations and brand equity. The sale of two-wheeler helmets manufactured by them contributes a significant portion to total sales (92.81%, 92.43%, 92.44% and 91.91% for the three months ended June 30, 2025 and Fiscals 2025, 2024, and 2023, respectively). Any decrease in motorcycle sales could have an adverse effect on their business, cash flows, results of operation and financial position. Company’s continued operations at their manufacturing facilities are critical to their business and any disruption, breakdown or shutdown of their manufacturing facilities may have a material adverse effect on their business, financial condition, results of operations and cash flows.Company incur significant expenses in relation to the procurement of their primary raw materials. In the event they are unable to procure adequate amounts of raw material, at competitive prices, their business, results of operations and financial condition may be adversely affected. Further, company do not generally enter into agreements with the suppliers and accordingly may face disruptions in supply from the current suppliers.In the past, for instance designs for their products, such as, Stellar – Wings were not well received by customers in the three months ended June 30, 2025 and Fiscals 2025, 2024 and 2023 and if they are unable to provide new designs or update their product catalogue in accordance with customer preference, it may adversely affect the business prospects, results of operations and cash flows. Company is dependent on certain raw material suppliers (which accounted for more than 40% in the three months ended June 30, 2025 and Fiscals 2025, 2024 and 2023). Any disruption in their operations or the inability of such suppliers to supply the raw materials in the quantities they require, may have an adverse effect on their business, results of operations and financial condition.10. Valuation: Studds Accessories is the largest domestic manufacturer and seller of two-wheeler helmets in India, supported by a comprehensive and continuously evolving portfolio of designs and product variants across multiple price points to meet the diverse preferences, functional needs and affordability levels of consumers. The company benefits from advanced manufacturing infrastructure and strong design and development capabilities, complemented by highly vertically integrated operations that span the entire production value chain. Additionally, Studds enjoys a robust pan-India presence and a steadily growing international footprint, enabled by an extensive and well-established sales and distribution network, while its adherence to stringent quality standards is reinforced by multiple major global and domestic accreditations. At the upper price band company is valuing at P/E of 28.5x to its FY26 annualized earnings and market cap of Rs 23,021 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “Subscribe-Long Term” rating to the IPO..Click on the attachment to read the full IPO report:.Studds Accessories IPO: Helmet-Maker's Issue To Open On Oct 30—Five Things To Know From RHP.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Studds Accessories IPO Opens For Subscription Today: 10 Key Things To Know Before You Bid — Anand Rathi Report

Studds is raising Rs 455.5 -crore through an offer for sale of 77.9 lakh equity shares.

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