Studds Accessories IPO subscribed 1.5 times on Day 1; should you apply? Check price band, GMP, other key details

Studds Accessories IPO sees robust public subscription. 

Studds Accessories IPO saw robust subscription on the first day of share sale as the issue got fully subscribed.

Helmets manufacturer Studds Accessories received 1.54 times subscription on the first day of bidding on Thursday. The company's IPO received bids for 84.15-lakh shares against 54.5-lakh shares on offer, as per NSE data.

The portion for non-institutional investors attracted 2.14 times subscription, while the category for Retail Individual Investors (RIIs) received 2.16 times subscription. Earlier, the company raised nearly Rs 137 crore from anchor investors.

Studds Accessories raises Rs 136.6 crore from 9 anchor investors ahead of Rs 455-crore IPO

Studds Accessories IPO GMP Today Price

According to platforms tracking the grey market activities, the shares of Studds Accessories are commanding a GMP of about 9 percent in the unregulated market. Investorgain quoted a GMP of Rs 54 for the shares of the company, indicating a listing gain of 9.23 percent. IPO Watch also quoted a GMP of about 9 percent.

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Studds Accessories IPO: Should you subscribe?

Brokerage SBI Securities has recommended subscribing to the issue. It noted that the company is a market leader in the two-wheeler helmet segment with a fully integrated manufacturing setup. Studds Accessories’ domestic market share in FY24 stood at 27.3 percent in volume terms and 25.5 percent in value terms, the brokerage said.

According to SBI Securities, the company’s revenue, EBITDA and profit after tax have grown at a compounded annual rate of 8 percent, 32 percent and 45 percent, respectively, over FY23–FY25. It added that Studds Accessories has maintained healthy return ratios and funded its expansion largely through internal accruals. At the upper price band, the issue is priced at 33.1 times estimated FY25 earnings on a post-issue basis, it said.

The company's Rs 455 crore IPO opened on October 30 and will conclude on November 3. The firm has set a price band of Rs 557-585 per share, valuing it at around Rs 2,300 crore at the upper end of the range.

Studds Accessories IPO shares are expected to be allotted by November 4, while the allotment is scheduled to take place on November 7.

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