Studds Accessories IPO GMP Jumps 10% — Should You Apply?

In India’s booming two-wheeler market, Studds Accessories Ltd has become a household name when it comes to rider safety. From durable helmets to stylish accessories, the company dominates the Indian helmet segment. Now, with its IPO hitting the market, investors are keen to know about its GMP (Grey Market Premium), price band, issue size, and whether it’s a good bet for the long run.

This article brings you a clear, easy-to-understand breakdown of the Studds Accessories IPO, written in a simple human tone — covering company background, strengths, risk factors, and key financial data. Let’s dive right in.

About Studds Accessories Ltd

Studds Accessories Ltd is one of India’s largest helmet and motorcycle accessory manufacturers, established over four decades ago. The company’s popular brands — Studds and SMK Helmets — have earned global recognition for quality and innovation.

Studds manufactures a wide range of products including helmets, visors, gloves, jackets, and riding gear. With a strong domestic network and exports to more than 70 countries, the brand has built both trust and scale.

Key Details Information
Company Name Studds Accessories Ltd
Headquarters Faridabad, Haryana
Industry Helmet & Two-Wheeler Accessories
Brands Studds, SMK
Export Presence 70+ Countries
Market Share Approx. 27% in Indian Helmet Market
Founded 1973

Studds Accessories Ltd IPO Details

The company has received regulatory approval for its Initial Public Offering (IPO) and is gearing up to make its debut on the stock exchanges. The IPO consists purely of an Offer for Sale (OFS), meaning no new shares are being issued by the company — existing shareholders will sell part of their stake.

Here’s an overview of the IPO structure:

Particulars Details
IPO Type Offer for Sale (OFS)
Price Band ₹557 – ₹585 per share
Face Value ₹5 per share
Expected Issue Size ₹800 – ₹900 crore (approx.)
Lot Size 25 shares
Listing Exchanges NSE & BSE
GMP (Grey Market Premium) ₹50 – ₹55 (approx. +10%)
IPO Opening Date October 30, 2025
IPO Closing Date November 1, 2025

Grey Market Premium (GMP) Explained

The GMP reflects investor enthusiasm for an IPO before it gets officially listed. For Studds Accessories Ltd, the current GMP is hovering around ₹50–₹55, which shows moderate optimism among investors.

However, it’s important to remember that GMP isn’t an official indicator — it only shows informal demand and can change anytime based on market mood and subscription numbers.

If this trend continues, Studds could see a listing gain of about 8–10%, though actual performance will depend on market conditions during the listing week.

Business Model and Strengths

Studds has built its brand on quality, safety, and affordability, serving both budget and premium riders. Let’s look at what makes it stand out:

  1. Strong Brand Image – Studds is a recognized name in India and abroad, giving it a big edge over small unorganized manufacturers.

  2. Wide Product Portfolio – From low-cost commuter helmets to premium SMK models, the company caters to every price segment.

  3. Growing Exports – Studds exports to 70+ countries, reducing dependence on the Indian market.

  4. Expanding Demand – With stricter road-safety laws and increasing two-wheeler sales, demand for helmets is expected to grow further.

  5. Strong Financial Health – The company has maintained consistent revenue growth, low debt, and a healthy profit margin.

Financial Performance Overview

Financial Year Revenue (₹ Crore) Profit After Tax (₹ Crore) EBITDA Margin (%)
FY2021 415 33 15%
FY2022 492 41 17%
FY2023 540 55 18%
FY2024 625 (est.) 63 (est.) 19%

Note: FY2024 data is based on provisional estimates for analysis purposes.

The numbers clearly show steady revenue and profit growth, reflecting Studds’ strong operational efficiency and brand power.

Risks to Consider Before Investing

Every IPO has its risks — and Studds Accessories Ltd is no exception. Here are some factors to keep in mind:

  • High Competition: The helmet market includes many unorganized players that compete on price.

  • Raw Material Cost: Changes in raw materials like plastics, foam, and metal parts could affect margins.

  • No Fresh Capital: Since this IPO is purely an OFS, the company won’t receive new funds for expansion.

  • Market Volatility: Global and domestic stock market conditions can affect listing price and demand.

Long-Term Growth Outlook

The future looks promising for Studds Accessories Ltd. With road safety laws tightening, two-wheeler sales increasing, and premium helmet adoption rising, the company is positioned to benefit.

Their expansion into premium helmets (SMK) and international distribution will likely drive both revenue and brand recognition in the coming years.

For long-term investors, Studds could be a steady compounder in the safety gear and mobility space — provided it continues to innovate and manage costs efficiently.

Should You Invest?

If you’re looking for a fundamentally strong company with a growing market, Studds Accessories Ltd fits the bill. Its GMP signals decent listing interest, and its financial track record offers stability.

However, because the IPO doesn’t inject fresh funds, investors should treat this as a brand-trust and long-term growth story rather than a short-term profit opportunity.

Also read:-

FAQs

Q1. What is Studds Accessories Ltd famous for?
Studds is known for manufacturing helmets and two-wheeler accessories under brands like Studds and SMK.

Q2. What is the GMP of Studds Accessories Ltd IPO?
The latest GMP is around ₹50–₹55, suggesting a possible 8–10% listing premium.

Q3. Is Studds IPO a fresh issue or OFS?
It is a 100% Offer for Sale (OFS) by existing shareholders.

Q4. When will the IPO open?
The IPO is expected to open on October 30, 2025, and close on November 1, 2025.

Q5. What is the expected listing gain?
Based on GMP, a listing gain of around ₹50–₹60 per share could be expected, though it may vary with market conditions.

Conclusion

Studds Accessories Ltd IPO represents an opportunity to invest in a strong consumer brand backed by consistent financials and a growing safety-gear industry. The GMP is healthy, indicating moderate investor interest, while the company’s export growth story adds to its appeal.

Still, as always, investors should read the DRHP, analyze valuations, and make an informed decision based on their risk appetite.

Leave a Comment