The IPO for Studds Accessories begins on October 30. Before subscribing to the issue, review the top ten hazards. Subscriptions for the Studds Accessories IPO, which has a price range of ₹557 to ₹585, start on October 30 and conclude on November 3. The expected listing price is ₹640, and the lot size is 25 shares. An offer-for-sale is the only component of the IPO. Today’s IPO GMP for Studds Accessories is ₹55.
Studds Accessories IPO GMP Today: Check Current Grey Market Premium and Live Performance
Subscriptions for the Studds Accessories IPO will open on Thursday, October 30, and end on Monday, November 3. The Studds Accessories IPO distribution to anchor investors is set for Wednesday, October 29. The pricing range for Studds Accessories’ initial public offering (IPO) is set between ₹557 and ₹585 per equity share with a face value of ₹5. The IPO lot size for Studds Accessories is 25 equity shares, and going forward, it will be in multiples of 25 equity shares.
Today’s IPO GMP for Studds Accessories is ₹55. The expected listing price of Studds Accessories shares was ₹640 per share, which is 9.40% more than the IPO price of ₹1,375, taking into account the top end of the IPO pricing band and the existing premium on the grey market.
Studds Accessories’ initial public offering (IPO) has set aside at least 50% of the shares for qualified institutional buyers (QIB), at least 15% for non-institutional institutional investors (NII), and at least 35% for retail investors.
Studds Accessories’ initial public offering (IPO) comprises only of an offer-for-sale (OFS), in which 77.86 lakh shares are sold by the promoter group and other investors.
Studds will not get any money because the whole offering is an OFS; instead, the selling stockholders will receive all profits.
Studds was founded in 1975 and produces a range of motorcycle accessories, including luggage, gloves, rain coats, riding jackets, eyeglasses, and helmet locks, in addition to designing, producing, marketing, and selling two-wheeler helmets under the “Studds” and “SMK” brands. SMK, which debuted in 2016, targets luxury motorcycle riders, whilst Studds concentrates on the mass and mid-market categories.
In its Red-Herring Prospectus (RHP), the corporation cited the following major risks:
Studds Accessories IPO: Major Risks Investors Should Know
As Studds Accessories heads toward its IPO, potential investors should carefully evaluate the key risks associated with the company’s business operations, market dependency, and financial performance. Here’s a detailed look at the major risk factors outlined in their draft red herring prospectus (DRHP).
1. Brand Dependence on ‘Studds’ and ‘SMK’
The company’s growth heavily relies on the strength of its flagship brands — ‘Studds’ and ‘SMK’. Any inability to maintain or enhance the reputation and market acceptance of these brands could lead to a decline in product sales. This, in turn, may adversely impact the company’s business performance, financial health, and brand equity.
2. Reliance on Two-Wheeler Helmet Sales
Studds derives a significant portion of its revenue from two-wheeler helmet sales, accounting for over 91% of total sales in recent years (92.81% for Q1 FY26, 92.43% in FY25, 92.44% in FY24, and 91.91% in FY23). A slowdown in motorcycle sales or changes in consumer demand could directly affect the company’s cash flow, profitability, and overall financial stability.
3. Manufacturing Plant Risks
The company’s operations depend largely on its manufacturing facilities. Any unexpected disruption, equipment malfunction, or closure of these plants could significantly affect production and supply schedules. Such interruptions could harm business continuity, financial results, and operating cash flow.
4. Certification and Accreditation Delays
Studds’ products often require third-party certifications and accreditations to meet regulatory and market standards. Any delay or failure in obtaining these approvals may result in postponed deliveries, supply chain disruptions, and a negative impact on financial performance and customer trust.
5. Underutilization of Manufacturing Capacity
With recent capacity expansions, underutilization of manufacturing units could become a concern. Inefficient use of production capacity may reduce profitability and hinder the company’s ability to achieve its growth targets, thereby impacting its long-term business prospects.
6. Absence of Comparable Listed Peers
Studds Accessories operates in a niche industry segment and currently has no directly comparable listed peers—either in India or globally—of similar scale and financial profile. This lack of benchmarks may make it challenging for investors to assess the company’s valuation and performance metrics, requiring them to rely on independent analysis.
7. Quality Control and Product Liability Risks
Any lapses in quality control—either domestically or internationally—could hurt the company’s reputation. If product quality falls short of customer expectations, Studds may face product recalls, repairs, or buybacks, and even potential product liability claims, all of which could dent profits and brand image.
8. Acquisition Integration Challenges
The company’s acquisition of Bikerz US Inc. and any future strategic acquisitions may not deliver the expected synergies or benefits within the anticipated timeframe. Failure to successfully integrate these businesses could impact Studds’ growth plans and overall financial outcomes.
9. Licensing and Regulatory Compliance
Studds’ operations require multiple statutory licenses, permits, and approvals. Failure to obtain, renew, or maintain these regulatory clearances could disrupt operations, leading to financial and reputational setbacks.
10. Labor and Industrial Relations Risks
The company’s business could face disruptions from strikes, work stoppages, or labor disputes arising from employee demands or other industrial issues. Such incidents could hamper manufacturing operations, resulting in production delays and adverse effects on financial performance.
Conclusion
While Studds Accessories stands as a market leader in the helmet and motorcycle accessories segment, investors should remain cautious about the inherent risks. Strong brand management, operational efficiency, and regulatory compliance will be key factors determining the company’s long-term success post-IPO.
