Studd Accessories Ltd.

OFS from India’s Largest Helmet Manufacturer

Studds Accessories Ltd. (SAL) is India’s largest two-wheeler helmet manufacturer by revenue and the world’s largest helmet producer by volume as of 2024. The company’s upcoming Initial Public Offering (IPO) is entirely an Offer for Sale (OFS) aimed at facilitating the listing of its shares on the stock exchanges.

IPO Details:

SAL operates a vertically integrated business with four manufacturing facilities in Faridabad, Haryana, and a fifth plant currently under construction to enhance its production capacity. The company designs, manufactures, and markets helmets under two distinct brands—Studds (targeting the mass and mid-market segments) and SMK (positioned in the premium category). In addition to helmets, the company also produces two-wheeler accessories such as luggage boxes, gloves, helmet locks, rainwear, riding jackets, and eyewear. Helmets account for around 90% of its total sales, with Studds commanding over 70% of India’s total helmet market.

The company offers over 240 helmet designs and sells its products domestically and in more than 70 countries, with exports contributing over 20% of its FY25 revenue. It maintains strong OEM partnerships with brands like Hero MotoCorp, Suzuki, Royal Enfield, Yamaha, and Honda. Studds is also investing in technology integration including Bluetooth-enabled helmets, rear-view cameras, and e-commerce-based customization.

Financial Performance:

Between FY23 and FY25, SAL recorded a total income growth of 8.5%, reaching Rs.596 crore, while net profit surged by 46% from Rs.33 crore to Rs.70 crore. Following a 1:1 bonus issue in January 2025 to promoters, the company’s equity capital doubled. Post the OFS, the promoter shareholding will decline from 78.8% to 61.8%. The issue price values the stock at 33x its March 2025 EPS of Rs.18, and 28x based on annualized quarterly trends.

Helmet Market Overview:

While global players such as HJC, Shoei, and AGV operate at lower volumes, they cater to the premium and racing segments. The Indian helmet market is currently witnessing a shift from the unorganized to organized sector, driven by increased awareness, stricter safety regulations, and growing preference for ISI-certified helmets.

Studds’ Indian competitors include:

– Vega Auto Accessories – Annual capacity of 9 million units, wide price range, lower national presence, and limited exports.

– Steelbird Hi-Tech India – Installed capacity of 8 million units (expanding to 10 million), strong OEM partnerships, exports to 50 countries, but exports form only about 10% of total revenue.

All three major players operate at comparable profit margins, though Studds leads in scale, exports, and brand recognition.

Financial Performance Comparison (FY25):

The OFS has received participation from 10 anchor investors (23.35 lakh shares), including three prominent mutual funds—HDFC, ICICI and Nippon. The issue is reasonably priced and could offer moderate listing gains if market sentiment remains supportive.