Studds Accessories IPO Listing: Stock lists at 10% premium on NSE
Studds Accessories IPO Listing: Shares Could List at a 10% Premium on November 7 — What Should Investors Do?
Studds Accessories Limited, the world’s largest two-wheeler helmet manufacturer by volume and a leading name in India’s safety accessories industry, is all set to debut on the stock exchanges on November 7. Market analysts expect the stock to list at a 9–11% premium over its issue price, reflecting strong investor demand and optimism about the company’s growth potential.
The IPO of Studds Accessories received an overwhelming response, with the issue subscribed 73.25 times, signaling robust investor confidence in the company’s business model, market leadership, and growth prospects in both domestic and international markets. The shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Global Leader with Nearly Five Decades of Experience
Founded in 1975, Studds Accessories has built a strong reputation as one of the most trusted brands in the helmet and motorcycle accessories industry. The company designs, manufactures, and sells a wide range of helmets and riding accessories catering to both mass-market and premium segments.
According to Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares & Stock Brokers, “Studds Accessories is India’s largest helmet manufacturer by revenue and the world’s largest by volume. With nearly five decades of industry experience, the company has a deep understanding of safety standards, consumer preferences, and technological innovation.”
As of March 31, 2025, the combined annual manufacturing capacity across Studds’ four plants stood at 9.04 million units, while total sales for the year reached 7.4 million helmets. The company operates under two key brands—Studds and SMK—which cater to different customer segments. The Studds brand focuses on affordable and mid-range helmets, while SMK targets the premium market, offering high-performance models with advanced safety features and modern designs.
Strong Export Footprint Across 70+ Countries
Studds’ market reach extends far beyond India. The company exports its helmets and accessories to over 70 countries, including major markets in North America, Europe, Africa, and Asia. This strong export presence provides revenue diversification and reduces dependence on the domestic two-wheeler industry, which is often cyclical in nature.
In addition to its own brands, Studds also manufactures helmets for international labels such as Jay Squard LLI (Daytona) and O’Neal, both of which are sold primarily in overseas markets. This OEM (original equipment manufacturer) business contributes to steady export revenue and helps Studds leverage its large-scale production capabilities.
The company has also expanded its product portfolio beyond helmets to include riding accessories such as gloves, jackets, visors, and luggage solutions, all marketed under the Studds brand. This diversification aligns with the growing demand for safety and lifestyle gear among young riders in India and abroad.
Valuation and Market Capitalization
At the upper end of the price band, Studds Accessories’ shares are valued at a price-to-earnings (P/E) ratio of 28.5 times its projected FY26 earnings. The company’s post-issue market capitalization stands at approximately ₹2,302 crore.
While this valuation reflects optimism about the company’s future growth, analysts caution that investors should also consider the offer-for-sale (OFS) structure of the IPO. Since no new shares were issued, the proceeds from the IPO will not directly contribute to the company’s expansion plans. As a result, Studds’ future growth will largely depend on operational efficiency, capacity utilization, and the performance of the two-wheeler industry, both in India and globally.
Expected Listing Premium and Market Sentiment
According to Shivani Nayati, Head of Wealth Management at Swastika Investmart, Studds’ shares have been trading at a premium of ₹55–₹67 in the grey market, suggesting a likely listing gain of 9–11% on the day of debut.
“The strong subscription figures, leadership position in the helmet segment, and healthy financials indicate a positive listing. However, long-term investors should evaluate the valuation carefully before deciding whether to book listing gains or hold the stock,” Nayati added.
Given the company’s established brand, strong export demand, and premium product positioning, the listing is expected to attract both retail and institutional investors seeking exposure to India’s expanding safety gear and two-wheeler ecosystem.
Financial Performance and Profitability
Studds has demonstrated consistent financial performance over the past few years. In FY25, the company reported revenue of ₹590 crore, with EBITDA margins in the range of 18–20%, reflecting efficient cost management and healthy pricing power. The net profit for the year stood at approximately ₹70 crore, up from the previous fiscal, driven by strong sales of the SMK premium range and increased export volumes.
According to Harshal Dasani, Business Head of INVasset PMS, “Studds holds a commanding 27% market share in India’s helmet market. With four integrated manufacturing facilities and exports to more than 70 countries, the company has positioned itself as a global leader in protective gear. Its focus on innovation and design is expected to sustain revenue growth in the coming years.”
Dasani added that the company’s SMK brand is gaining traction in both domestic and international markets, and its premiumization strategy could help improve profitability going forward.
Industry Outlook: Tailwinds from Rising Safety Awareness
The growth prospects for Studds Accessories are supported by strong industry tailwinds. Rising safety awareness among two-wheeler riders, stricter government regulations mandating helmet use, and increasing urbanization are driving higher demand for helmets in India.
The Indian helmet market, valued at over ₹2,000 crore, is expected to grow steadily over the next five years, supported by the continued rise in two-wheeler ownership and export opportunities in developing regions. Moreover, the growing popularity of motorcycling as a recreational activity, coupled with a surge in demand for premium helmets, bodes well for brands like SMK.
What Should Investors Do?
For investors who were allotted shares in the IPO, most analysts recommend holding the stock for the long term, especially given Studds’ strong fundamentals, market leadership, and global footprint. However, short-term investors looking for quick profits may consider booking partial gains if the stock lists at a premium of 10% or more.
In summary, Studds Accessories offers a compelling combination of brand strength, export diversity, and growth potential, though valuations appear stretched in the near term. The company’s long-term performance will depend on its ability to sustain export momentum, expand its premium portfolio, and capitalize on the growing emphasis on road safety.
Final Thoughts
With a likely 9–11% listing premium and strong investor sentiment, the Studds Accessories IPO debut is expected to be favorable. For long-term investors, it represents a solid opportunity to participate in India’s evolving safety and lifestyle accessories market—provided they can ride through short-term valuation volatility.
