Studds Accessories Ltd., the leading manufacturer of two-wheeler helmets in India, has once again filed for an initial public offering (IPO), seven years after its first attempt. This time, the IPO will be a pure offer for sale (OFS) of up to 77.9 lakh shares, with existing promoters and early investors partially exiting their holdings. No fresh capital will be raised through the issue.

1. Promoters Lead the Stake Sale
Chairman Madhu Khurana, Managing Director Sidhartha Khurana, and members of the Leekha family are among the key stakeholders participating in the OFS. Since no new shares are being issued, the company itself will not receive any funds from the IPO process. The move reflects a liquidity event for early backers rather than a fundraising initiative for expansion.

2  Valuation and Recent Corporate Actions
The Faridabad-based company was valued at over ₹3,500 crore during its last share transaction in August 2024. In a move to reward shareholders and boost liquidity, Studds allotted 1.96 crore bonus shares earlier this year in a 1:1 ratio. Studds markets its products under two prominent brands — Studds and SMK — and has established a strong global footprint, selling in over 70 countries.

3. Dominance in the Helmet Market
Studds enjoys a dominant position in the Indian market, with a 27.3% share by volume and 25.5% by value, as per its draft red herring prospectus (DRHP). The company emphasized that it has no listed peers of a comparable size either domestically or globally, highlighting its unique position in the protective gear industry.

4. Lead Managers and Deal Structure
IIFL Capital Services Ltd. and ICICI Securities Ltd. have been appointed as lead managers to steer the IPO process. Their involvement signals strong institutional support for the issue, with the transaction expected to attract significant interest from both domestic and foreign investors.

5. Financial Snapshot: Solid Growth Trajectory
Studds delivered robust financial results for FY24. Its revenue rose by 6% year-on-year to ₹529 crore, while Ebitda surged 50% to ₹90 crore, lifting the margin to 17% from 12% a year earlier. Net profit skyrocketed 73% to ₹57 crore, continuing a trend of strong earnings momentum, with profit growing at a CAGR of over 40% since FY22.

For the first half of FY25 (ended September 2024), the company reported ₹285 crore in revenue and ₹33 crore in net profit, maintaining healthy operating margins of 17.9%. Studds also maintains a solid financial position with ₹40 crore in cash and manageable liabilities totaling ₹125 crore.

6. IPO Timing: Navigating a Cautious Market
The timing of Studds’ IPO comes at a moment when global equity markets are cautiously optimistic. Recent data from the U.S. and Europe show signs of slowing inflation, prompting hopes of interest rate cuts in the second half of 2025. This shift is fueling a revival in IPO activity globally, especially in growth sectors like consumer goods, technology, and mobility solutions.

India’s IPO market, too, has shown resilience with several successful listings in early 2025, although investors are becoming increasingly selective. Companies with strong brand value, profitability, and export potential — like Studds — are better positioned to attract attention amidst the crowded IPO pipeline.

8. Helmet Industry: Growing Demand Amid Safety Push
The two-wheeler helmet market is witnessing a global surge driven by rising awareness of road safety, regulatory mandates, and urbanization in emerging economies. In India, government initiatives to enforce helmet usage for riders and pillion passengers are further boosting demand. Studds, with its extensive product range, brand recognition, and global distribution network, is well-placed to capitalize on these trends.

9. Outlook: Ready to Ride the Growth Wave
Given its leadership position, strong financials, and consistent track record, Studds Accessories enters the IPO market with significant tailwinds. However, as with any offer for sale, the success of the issue will largely depend on investor appetite for consumer discretionary plays and broader market sentiment closer to the listing date.  

If market conditions remain favorable, Studds could well script a successful second chapter in its IPO journey — delivering value not just to its promoters but also to new shareholders who bet on its growth story.