Studds I͏͏PO͏ ͏Review Evalu͏ating th͏e Risk-Re͏ward Equa͏ti͏o͏͏n for Investors

͏Mu͏mbai, 29 Octobe͏r 2025: The S͏tudds Accessori͏es͏ IPO is se͏t to open ͏͏fo͏r͏ subscrip͏tion on Thursday͏,͏ 30͏͏ ͏Octob͏er ͏2025, w͏ith the compa͏ny l͏͏ooking to rais͏e ₹455.49 crore via ͏͏a full Offer for Sale (OFS͏)͏ of ͏7͏.7͏86 milli͏o͏n ͏equi͏ty shares͏. Th͏e͏ price b͏and͏ h͏as b͏een f͏i͏xe͏d͏ at ₹557 ͏to ₹585͏ per͏ shar͏e, ͏an͏d͏ ea͏ch ͏lot si͏ze is ͏25 s͏ha͏res. ͏͏T͏he͏͏ iss͏ue is mana͏ged ͏by IIFL Capit͏al S͏ervices͏͏ and ͏ICICI Securi͏͏ties, with MUF͏G Inti͏me In͏dia as t͏he regist͏rar͏.

Stron͏͏g͏͏ I͏ssue͏ S͏ize͏ o͏f͏ ₹455.49 ͏Crore͏ S͏park͏s ͏Atten͏͏t͏ion

The si͏ze͏ab͏͏le ͏iss͏ue amoun͏t͏ and ͏clear͏ t͏͏imeline create a def͏͏i͏ni͏tive mark͏et ͏m͏oment͏. Since t͏h͏͏e ͏͏OFS͏ means the company will not receive proceeds, the issue places direct selling pressure on the promoters — including Madhu Bhushan Khurana, Sidhartha Bhushan Khurana and Chand Khurana  and early investors like Sanjay Leekha and others. The fact that all funds flow to selling shareholders rather than to the business may influence how market participants view the valuation.

Solid Financial Performance of FY24-25 Enhances Studds Accessories IPO Valuation Context

The company achieved a total income of ₹595.89 crore in FY25, up 11 % year-on-year (y-o-y), while profit after tax (PAT) rose 22 % to ₹69.64 crore. With a return on equity (ROE) of 16.64 %, a return on capital employed (ROCE) of 20.25 %, and an effective EBITDA margin of 17.96 %, the fundamental metrics underpin the valuation. Post-issue, market capitalisation is projected at ₹2,302 crore, translating into a P/E multiple of 28.43x based on FY25 earnings.

Market Leadership of Studds Accessories IPO Reinforces Competitive Edge

According to a CARE report, the company is the largest Indian two-wheeler helmet manufacturer by revenue in FY24 and the world’s largest by volume in CY24, with approximately 7.40 million helmets sold in FY25. Its integrated manufacturing model — covering EPS liners, mould shops, design centres and testing labs — and a distribution network of 363 active distributors across India and export markets give it a structural advantage, reinforcing its valuation context.

Operational Concentration Risk in Faridabad Exposes Studds Accessories IPO to Vulnerabilities

All of the company’s manufacturing facilities reside in Faridabad, Haryana, which creates geographic concentration risk. Any disruption — such as labour disruptions, regulatory constraints or a natural catastrophe — could hit output severely. In addition, the reliance on spot procurement of raw materials from India, China, Japan, Thailand and the Netherlands adds supply-chain exposure and margin pressure in the event of disruption.

Regulatory and Demand Dynamics Could Influence Studds Accessories IPO Risk-Reward Profile

The company must obtain certifications such as BIS (Bureau of Indian Standards) domestically, ECE in Europe, Philippine Standard and SNI in Indonesia. Any lag in certification could delay product launches. Additionally, changing rider preferences and competitive moves in helmet design mean any failure to innovate could impact sales growth. Thus, regulatory and demand-driven factors will shape the longer-term reward.

Studds Accessories IPO Market Outlook Sets Stage for Post-Listing Focus

With the Indian two-wheeler helmet market projected to grow significantly due to increasing regulation and safety awareness, the broader market backdrop supports the company’s positioning. Export reach into over 70 countries adds diversification. That said, the listed entity’s performance will likely depend on execution, cost controls and global market trends rather than the listing event alone.

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