Studds Accessories Refiles DRHP With SEBI for IPO

Studds Accessories, the well-known helmet manufacturer, has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking its second attempt to go public. 

The first filing was made in 2018, which received regulatory approval but was eventually withdrawn.

Offer for Sale by Promoters

The IPO will be an Offer for Sale (OFS) of up to 77.9 lakh equity shares. No new shares will be issued, and the company will not receive any proceeds. The selling shareholders include promoters Madhu Bhushan Khurana (around 38 lakh shares), Sidhartha Bhushan Khurana (8 lakh shares), and Chand Khurana (approximately 21 lakh shares). As of now, Madhu Bhushan Khurana holds 37.95%, Sidhartha Bhushan Khurana 31.79%, and Chand Khurana 8.35% of the company.

IIFL Capital Services and ICICI Securities are the lead managers for the IPO.

Financials for FY24

For the financial year ended March 2024, Studds reported a revenue of ₹529.02 crore, up from ₹499.17 crore in FY23. Net profit rose to ₹57.23 crore from ₹33.15 crore the previous year. The EBITDA margin stood at 17.05%, compared to 12.03% in FY23. For the six-month period ending September 2024, revenue from operations was ₹285 crore, with a net profit of ₹33 crore.

Business Overview

Studds manufactures and sells two-wheeler helmets under the ‘Studds’ and ‘SMK’ brands. The company also offers accessories such as luggage, gloves, rain suits, riding jackets, and eyewear. It operates three manufacturing facilities with a total capacity of 90.4 lakh helmets per year, and a fourth plant is under construction. In FY24, the company sold approximately 71 lakh helmets.

Studds exports its products to over 70 countries across the Americas, Asia, and Europe. It also manufactures helmets for international brands, including Daytona (USA) and O’Neal (USA, Europe, and Australia).

Conclusion 

The company has refiled its IPO papers after a previously withdrawn attempt in 2018. As the offer comprises only a sale by existing shareholders, no fresh capital will be raised, and the proceeds will go to the selling stakeholders.

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