Helmet maker Studds Accessories receives SEBI approval to float IPO

The SEBI has issued observation letter on the draft papers of Studds on July 8

Haryana-based helmet maker Studds Accessories has received approval from the capital markets regulator SEBI to float its initial public offering (IPO) for fund raising.

The SEBI has issued observation letter on the draft papers of Studds on July 8. The issuance of observation letter means the company can launch its IPO within the next one year.

Studds Accessories has filed preliminary papers with the SEBI for its IPO on March 26 this year. The IPO comprises of entirely an offer-for-sale of 77.86 lakh shares by existing shareholders including promoters Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Chand Khurana.

As a result, all the IPO proceeds will go to the selling shareholders, and the company will not receive any offer money.

Promoters hold 78.78 percent stake in the company including Madhu Khurana (37.95 percent stake), Sidhartha Khurana (31.79 percent), and Chand Khurana (8.35 percent). The remainder 21.22 percent shares are owned by public shareholders.

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Studds Accessories that claimed to be the world’s largest two-wheeler helmet player by volume in 2024, had earlier filed draft papers with SEBI in 2018. At that time, the IPO included a fresh issue of shares worth Rs 98 crore and an offer for sale of up to 39.4 lakh shares, however, the company could not get executed the said IPO plan.

The company sells helmets under its brand Studds and SMK, as well as other accessories (such as two-wheeler luggage, gloves, helmet locking device, rain suits, riding jacket and eye wear) under Studds brand, in more than 70 countries.

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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 merchant bankers handling the Studds Accessories IPO are IIFL Capital Services, and ICICI Securities.