Helmet maker Studds files draft paper before Sebi, reviving IPO plans

The company had earlier filed draft papers with SEBI in 2018. At that time, the proposal included a fresh issue of shares worth Rs98 crore and an offer for sale of up to 3.94 million shares

Helmet maker Studds Accessories has refiled its Draft Red Herring Prospectus (DRHP) with capital market regulator Sebi for approval to raise funds through an Initial Public Offering (IPO).

The IPO will be an Offer For Sale only, of up to 77.9 lakh shares by existing shareholders and promoters, where Madhu Bhushan Khurana will sell around 38 lakh shares, Sidhartha Bhushan Khurana around 8 lakh shares, and Chand Khurana approximately 21 lakh shares. Currently, Madhu Khurana holds a 37.95% stake, Sidhartha Khurana holds 31.79%, and Chand Khurana owns 8.35% of the company.

The company had earlier filed draft papers with Sebi in 2018. At that time, the proposal included a fresh issue of shares worth Rs 98 crore and an offer for sale of up to 39.4 lakh shares, however, the plan was not executed.

Studds is India’s largest two-wheeler helmet maker in terms of revenue, and world’s largest by volume, with nearly 50 years of manufacturing experience. Its three facilities have a combined annual capacity of 90.4 lakh units, and managed to sell 71 lakh helmets in FY24. A fourth manufacturing facility is currently under construction.

The helmet maker designs, manufactures, and sells its products under the ‘Studds’ and ‘SMK’ brands, along with accessories such as luggage, gloves, rain suits, and eyewear. Its products are available across India and exported to over 70 countries, including those in the Americas, Europe, and Asia.

Launched in 2016, SMK is the company’s premium, globally marketed brand. It also manufactures helmets for brands like Daytona (USA) and O’Neal (USA, Europe, and Australia).

For FY24, the firm reported a revenue of Rs 529.02 crore compared to Rs 499.17 crore a year ago. Net profit for the period stood at Rs 57.23 crore against Rs 33.15 crore last year. EBITDA margin for the fiscal was at 17.05 percent versus 12.03 percent. IIFL Capital and ICICI Securities will be the lead managers to the issue.