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

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.