Studds IPO: Studds Accessories, which is the largest two-wheeler helmet manufacturer, files its DRHP for an IPO. The company is raising funds after 7 years. The helmet manufacturer aimed to raise Rs 98 crore in 2018 through primary share issuance, with an offer for sale of up to 39.4 lakh shares. However, the proposal didn't materialize.
How are the funds going to be raised?
As per the DRHP filings, the proposed IPO will have an offer for sale of up to 7,786,120 equity shares with a face value of ₹5 each. The company will not receive any funds from the offer for sale conducted by the selling shareholders.
The promoter shareholders participating in the sale include Sidhartha Bhushan Khurana and Chand Khurana. These shares will be listed on the BSE and NSE.
What’s the purpose of raising new funds?
The objective of this offer is
1) To get the benefits of listing their equity shares on the stock exchange.
2) Carry out an OFS for OFS of up to 7,786,120 equity shares of face value.
The company will not receive any funds from the offer for sale conducted by the selling shareholders.
About Studds Accessories
Established in 1972, Studds Accessories’ journey to manufacturing 7 million helmets and other two-wheeler accessories per year initially started from a garage. Studds Accessories is the world’s largest two-wheeler helmet and accessories (spare visors, jackets, rainwear) manufacturer. The company grew from selling 58 lakh helmets in 2019 to 66 lakh in 2020 and 1.2 crores in 2021.
Studds Accessories is also the first laboratory in India to be certified by the European Safety Agency. Studds Accessories holds a market share of 25% in the Indian vehicle helmet sector.
Current Shareholding
Currently, Studds is owned by the Khurana family with the following major shareholdings:
1) Madhu Bhushan Khurana owns 55.3%
2) Sidhartha Bhushan Khurana owns 14.4%
3) Chand Khurana owns 7.4%
Studds Accessories Financial Highlights FY 23-24
In FY24, the company achieved a revenue of Rs. 5,290.23 million, marking a 6% growth from the previous year’s Rs. 4,991.69 million.
Operational efficiency showed significant improvement, with EBITDA rising by 43.8% to reach Rs. 970.08 million, up from Rs. 674.74 million in FY23.
The company’s bottom line witnessed substantial growth, with Profit After Tax (PAT) surging by 72% to Rs. 572.27 million compared to Rs. 332.58 million in the previous year.
This strong profit performance translated into enhanced shareholder value, as evidenced by the Earnings Per Share (EPS) increasing to Rs. 29.08 from Rs. 16.90 in FY23.
The company’s financial position continued to strengthen, with net worth growing by 14.6% to reach Rs. 3,874.05 million at the end of FY24, up from Rs. 3,379.65 million in FY23.
Is Studds a listed company?
Studds Accessories Ltd is not a listed company; however, it is actively traded in the unlisted share market. With increased EBITDA growth and shareholder value, investors have a gainful opportunity to invest in the current Studds Accessories unlisted shares before its IPO.
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