Studds Accessories Ltd is one of the leading manufacturers in the road safety equipment domain. Considering the total sales of their two-wheeler helmets, the company has gained the highest revenue and sales across the world in the financial year 2018. Studds is the flagship brand under the company’s profile and is the largest selling two-wheeler helmet brand with access to the market of 40 countries around the world. Studd Accessories has launched its IPO with shares having a face value of INR 5 each. Studds Accessories was first launched in Haryana in 1983 with its initial base. The company has been a global market player with highlighted product categories including motorcycle and other two-wheeler helmets. The company is situated in Faridabad and has 4 manufacturing facilities equipped with advanced infrastructure to create an expansive range of more than 50 products. They are supported by the robust portfolio along with a strong dealer network that adds to its extensive legacy. In India, the company has a market share of 26% per cent that allows it to become a leading producer and manufacturer of road safety equipment with a prominent impact on the line of helmets.
Strength
The company boasts 4 business verticals including :
- Helmets for two-wheeler vehicles
- Motorcycle accessories
- Face masks and face shields
- Bicycle helmets.
The flagship brand “Studds” enjoys classic brand equity across the world with a popular coverage of the market in different countries. They also have a specialised brand for their helmets called “SMK”, which specifically matches the expectations and desires of the supreme two-wheeler market segment. One of the significant strengths of the company includes its high-quality tools and equipment along with progressive processes. These processes include automated injection moulding, automated silicon hard coating facility, a completely automated paint shop, exceptional metalizing and puttering technologies along a conveyorised line of assembly.
IPO Details
The Studds Accessories have been planning to issue the shares to the public and have already filed the Draft Red Herring Prospectus with the SecuritiesExchange Board of India i.e. SEBI. Studds Accessories plans to launch an IPO with 3, 939,000 equity shares that will be held by the promoters and will be extended to the public through Offer for Sale in the IPO issue. However, the information on the amount of money intended to be raised through this IPO is not yet declared.
Neither the date for the IPO has been announced by the company. Once the final Red Herring Prospectus will be filed with SEBI, it’s expected that the details about the total size of the IPO will be revealed. The speculations state that the IPO will consist of both fresh issues of shares and Offer for Sale as well. The fresh issues of shares might be worth INR 98 crores.
The promoter of this IPO issue is Mr Madhu Bhushan Khurana along with Mr Sidhartha Bhushan Khurana. The company has its lead managers as Edelweiss Financial Services and IIFL Holdings Ltd. The issue has been registered with Link Intime Private Ltd.