Studds Accessories IPO Review: GMP, Risks, Strengths, Valuation, Peer Comparison & More

When you think of helmets in India, it’s hard not to think of Studds. For nearly five decades, this homegrown brand has been protecting riders on Indian roads and beyond. Now, Studds Accessories Ltd, India’s largest helmet maker, is coming out with its ₹455.49 crore IPO from October 30 to November 3, 2025.

The issue is entirely an offer for sale (OFS), which means no new money is entering the company; instead, existing shareholders are selling their stakes. The price band is ₹557-₹585 per share. The GMP is around ₹53, showing roughly a 9.06% gain potential over the top price band. But remember, the GMP is an unofficial indicator; it only reflects current market sentiment and can change as the IPO date approaches.

In this story, we’ll help you understand Studds’ business model, IPO purpose, strengths and risks, valuation, and most importantly, what kind of growth story may unfold for investors.

IPO Overview

• IPO Date: October 30 to November 3, 2025
• Total Issue Size: ₹455.49 crore
• Price Band: ₹557 to ₹585 per share
• Minimum Investment: ₹14,625
• Lot Size: 25 Shares
• Tentative Allotment Date: November 4, 2025
• Listing Date: November 7, 2025 (Tentative)
• GMP: The GMP for the Studds Accessories IPO is ₹53, reflecting a 9.06% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Studds Accessories Runs Its Business?

Studds Accessories makes and sells two-wheeler helmets and safety gear under two main brands - Studds and SMK.

• Studds: The trusted, mass-market name, offering helmets priced between about ₹875 and ₹4,000.
• SMK: The premium line, launched in 2016, with prices ranging from ₹3,000 to ₹12,800.

Besides these, it also makes helmets for global brands like Daytona and O’Neal, exporting to over 70 countries.

The company controls almost its entire production chain; this is called being “vertically integrated”, meaning it designs, manufactures, and distributes everything itself. Let’s simplify that flow:

• Design: 75 designers continuously create improved, stylish, and safe helmet designs. As of August 2025, they have 240+ models.
• Manufacturing: Operations run through four factories in Faridabad, Haryana, making key components like EPS liners (the foam inside helmets). A fifth plant is under construction.
• Distribution: Products reach customers through 363 distributors, tie-ups with major motorcycle makers (OEMs), online stores, and even government supply channels.

Thanks to this end-to-end control, Studds keeps costs lean, maintains strong quality, and adapts quickly to customer needs.

Objectives of the IPO

Offer for Sale (OFS): The IPO is entirely an OFS of 77.86 lakh shares worth ₹455.49 crore. All proceeds go to existing promoters and investors. The company will not receive any new funds. Promoters like Madhu Bhushan Khurana (selling 38 lakh shares), Sidhartha Bhushan Khurana (8 lakh shares), and Chand Khurana (21 lakh shares) are the key sellers.

Listing Benefits: Studds aims to gain the benefits of a stock market listing—greater brand visibility, better public profile, and a transparent trading market for investors.

Strengths:

• Market Leader: Studds holds a massive 27.3% market share by volume in India and sells in over 70 countries. Being India’s top helmet maker gives it scale and pricing power.
• Strong Profitability: In FY25, revenue stood at ₹583.8 crore and net profit at ₹69.64 crore. Its EBITDA margin rose sharply from 12% in FY23 to nearly 18% in FY25. For every ₹100 earned, Studds keeps roughly ₹18 as operating profit before interest and tax.
• Efficient Use of Capital: A Return on Capital Employed (RoCE) of 20% means it earns ₹20 for every ₹100 put into the business. That’s a strong indicator of efficiency.
• Debt-Free and Cash-Rich: With borrowings reduced from ₹30.6 crore in FY23 to just ₹2.9 crore in FY25 and a negative Net Debt-to-Equity ratio of (0.07), Studds is financially stable.
• Export Growth: Exports contributed 22.8% of revenue in Q1 FY26, showing Studds’ rising international presence.

Risks:

• Geographic Concentration: All manufacturing is located in Faridabad. Any local disruption, from power outages to labor unrest, could halt production.
• Heavy Dependence on Raw Materials: Over half (52%) of total costs come from materials like ABS plastic and paint. Most are bought on a spot basis (short-term purchase), so price swings could hurt margins.
• Limited Product Success Rate: About 76% of revenue comes from its top 15 helmet designs. Some new models, like Stellar Wings, haven’t sold well, showing design and demand risks.
• Discount Pressure from Online Sellers: Online retailers often offer discounts as high as 36%, which can erode the premium brand image of SMK.
• Non-Compliance Issues: Past lapses in legal filings, like incorrect share allotments and late foreign investment forms, could invite penalties.

For detailed information, visit Studds Accessories’ IPO page.

Peer Comparison

• Studds leads the industry in size and market reach. In FY24, its revenue was ₹529 crore, bigger than Vega’s ₹474 crore and Steelbird’s ₹210 crore, showing its strong market presence.
• Profit-wise, Studds earned ₹57 crore in FY24, higher than Vega’s ₹53 crore and Steelbird’s ₹27 crore. This means Studds keeps more money from its sales after costs.
• Studds manages debt very conservatively with a Net Debt to Equity ratio of (0.07), meaning it basically has no borrowings. Vega and Steelbird have more debt, which adds financial risk.
• EBITDA margin, which shows profitability from core business before interest and tax, is a bit lower for Studds (17%) compared to Vega (18.8%) and Steelbird (19.3%).
• Return on Capital Employed (RoCE) is a measure of efficiency in using capital. Studds’ RoCE (19%) trails Vega (21%) and Steelbird (37%), indicating peers might be using their investments more efficiently.

It’s important to note that there are no listed companies that match Studds Accessories’ scale and business model exactly. So, while peers offer some comparison, Studds is somewhat unique in its market position and global size, making direct valuation comparisons limited.

Studds Accessories’ Financial Performance

Studds shows a steady climb:

• Revenue: Grew from ₹506.5 crore in FY23 to ₹595.9 crore in FY25, an 8.5% annual rise.
• Profit: Jumped from ₹33.1 crore to ₹69.6 crore in the same period, growing nearly 45% per year.
• Margins: EBITDA margin rose from 12% to nearly 18% due to better cost control and reduced borrowing.
• Cash Flow: Generated ₹63 crore from operating activities in FY25, with strong internal cash generation.

Overall, Studds is expanding smartly and profitably, with more efficiency every year.

Studds Accessories IPO Valuation

At the upper band of ₹585 a share, the IPO values Studds at about 33 times its FY25 earnings.

In simple terms, a P/E ratio of 33 means investors are paying ₹33 for every ₹1 of profit Studds made last year. That’s a premium valuation but justified by its strong brand, leadership, and growth potential.

Its EV/EBITDA multiple is 21.6 times, supported by robust earnings and a debt-free balance sheet. However, no listed company matches its global scale, so comparisons are limited; valuing it purely depends on how bullish investors are about helmet demand growth.

Who Leads Studds Accessories?

The company is led by an experienced promoter family:

• Madhu Bhushan Khurana (Chairman and MD): With over 42 years in the industry, he shaped Studds from a small workshop to the world’s top helmet maker by volume.
• Sidhartha Bhushan Khurana (Managing Director): Brings 25+ years of business and manufacturing experience, driving global expansion and product diversification.
• Shilpa Arora (Whole-time Director, Global Sales Head): Based in Canada, she manages global sales and expansion across North America and Europe through its arm, Bikerz US Inc.

Together, this leadership team combines long industry roots with global vision.

Who’s Making Money from the IPO?

All IPO proceeds go to the selling shareholders. Key sellers include:

• Madhu Bhushan Khurana: ₹222 crore
• Sidhartha Bhushan Khurana: ₹46.8 crore
• Chand Khurana: ₹122.9 crore

Other smaller shareholders include Sanjay Leekha, Charu Leekha, Sunil Kumar Rastogi, SE Shoes Pvt Ltd, and several others monetizing long-term investments.

Industry Outlook

The helmet industry is on a steady uptrend. Globally, it’s projected to grow by around 5% annually in value between 2024 and 2029. In India, government safety mandates, stricter enforcement, and the rise of premium helmets are driving consistent demand.

Three major growth drivers are:

• Mandatory safety rules (for riders and pillions),
• Rising income and urbanization,
• Greater safety awareness leading to quicker helmet replacement cycles.

Challenges remain - chiefly counterfeit helmets, raw material cost swings, and compliance costs with global standards like ECE 22.06, but overall, the direction is positive.

Analyst View

Studds is a fundamentally strong, debt-free, and well-managed company leading the Indian helmet market. It sits at the heart of a growing safety-focused industry. The valuation is on the higher side, but it aligns with its growth potential and leadership position.

For long-term investors who believe in the story of rising safety awareness, brand-led expansion, and strong operational discipline, Studds looks like a durable business. However, those seeking short-term profits should remember that it’s an OFS, so no new money is going into the business itself.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Studds Accessories' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.