Studds Accessories IPO Day 3 Highlights: Issue subscribed 73.25x. GMP hints 11% listing pop. Should you apply or not?

Studds IPO Day 3 Highlights: Studds Accessories IPO subscription status was 73.25x on day 3. The retail portion was subscribed 22.09 times, and NII portion has been booked 76.99x, Qualified Institutional Buyers (QIBs) portion received 159.99 times bids.

The company has received bids for 39,92,36,150 shares against 54,50,284 shares on offer, at 19:00 IST, according to data on BSE.

Studds IPO Day 3 LIVE: The company also supplies to leading OEMs such as Hero MotoCorp, Honda Cars India, Royal Enfield, and Yamaha, while maintaining a presence across EBOs, e-commerce, and government channels like the Central Police Canteen.

Studds IPO Day 3 LIVE: Studds Accessories Ltd operates four manufacturing facilities in Faridabad, India. Additionally, Manufacturing Facility V is currently under construction and is expected to be completed and commissioned in Fiscal 2026. This new under construction facility is being developed to further increase production capacity and meet growing demand for two-wheeler helmets in India.

1. Largest domestic player of two-wheeler helmets.
2. Wide design and product catalogue across price points catering to diverse consumer requirements.
3. Advanced manufacturing and D&D capabilities with vertically integrated operations.
4. Strong pan-India and global presence supported by an extensive and well-developed sales and distribution network and major quality accreditations.
5. Capital efficient and sustainable business model.
6. Experienced Promoters and Management team.

Studds IPO Day 3 LIVE: "On the valuation front, at the upper band of the issue price range, the company trades at a P/E of 33.1x based on FY25 earnings. We thus recommend a "SUBSCRIBE" rating from a medium- to long-term perspective," said BP Equities.

Studds IPO Day 3 LIVE:

1. Expand and strengthen the production capacity and deepen the vertical integration.
2. Strategically expand into new markets and geographies.
3. Increase the offering in the premium helmet segment in the Studds and SMK brand.
4. Expand the product portfolio.
5. Increase focus on domestic online sales channel.

Studds IPO Day 3 LIVE:

1. Studds Accessories Ltd is a leading manufacturer of two-wheeler helmet, which sells under the brand “Studds” and “SMK” with a strong domestic and global presence. In FY2025 itself, the company sold 7.4 million helmets.

2.The company faces is actively expanding its global footprint by leveraging its well established distributor network and OEM relationships. Furthermore, it is focused on driving growth through premiumization, product diversification, and digital expansion.

The Indian manufacturers have a reputation for delivering quality products at affordable prices. Motorcycles contribute 88% to the overall two-wheeler exports. The exports for two-wheelers rose by 21% y-o-y, during the FY25. Scooter shipments increased 11%, while motorcycle exports rose 23% during the same period.

In FY24, the exports for two-wheelers had declined by 5% on y-o-y basis mainly due to global inflationary headwinds, rising oil and commodity prices, weakening of the local currency compared to the US dollar, uncertainty on import duties, local regulations and high base effect of FY22, which could not be fully adjusted for in FY23. Major export markets include Nepal, Sri Lanka, Bangladesh, Southeast Asian countries (Myanmar, Philippines, Singapore, Vietnam, Malaysia), African countries (Nigeria, Egypt) and Latin American countries (Argentina, Colombia, Venezuela).

Studds Accessories is India’s largest two-wheeler helmet manufacturer by revenue in FY24 and the world’s largest by volume in CY24. The company designs, manufactures, markets, and sells helmets under the Studds and SMK brands and a range of two-wheeler accessories under Studds. With a presence in over 70 countries across the Americas, Europe, and Asia, Studds also produces helmets for international brands such as Daytona (Jay Squared LLC, USA) and O’Neal, catering to global markets including the U.S., Europe, and Australia.

The company designs, manufactures, markets, and sells two-wheeler helmets under the ‘Studds’ and ‘SMK’ brands, and also offers a range of two-wheeler accessories - including luggage, gloves, helmet locks, rain suits, riding jackets, and eyewear - under the ‘Studds’ brand. Studds Accessories has a strong domestic and international presence, with products sold across India and exported to more than 70 countries spanning the Americas, Europe, Asia (excluding India), and other regions.

Studds is setting up its new manufacturing facility, expected to be completed and commissioned in FY26, to enhance capacity and cater to rising helmet demand in India. Through its subsidiary, Bikerz US Inc., the company also manages inventory and logistics in the U.S. via third-party warehouses, ensuring an efficient supply chain and stronger market presence.

The company aims to capitalize on the global two-wheeler helmet market, projected to grow at a 5.1% CAGR from FY24 to FY29, driven by rising urbanization, safety awareness, and regulatory mandates. Anchored in its safety-first philosophy, the company emphasizes innovation, quality, and design, while positioning its SMK brand as an aspirational, globally appealing option that caters to diverse customer preferences and price segments.

1. Dependence on two-wheeler demand - industry slowdown can directly impact revenue
2. Exposure to raw material price volatility
3. Seasonal demand patterns may cause uneven revenue across quarters
4. Exposure to export market fluctuations, foreign exchange volatility, and changing trade policies
5. Competition

“At a valuation of P/E multiple of 33.1x (FY25 EPS of Rs. 17.7) and an EV/Sales multiple of 3.8x, SAL appears fairly priced. Its dominant market position, strong brand recall, and growing presence across domestic and international markets, coupled with favorable industry tailwinds and consistent financial performance, position it well for sustainable growth. We therefore recommend a “SUBSCRIBE” rating,” said Choice Equity Broking.

Studds IPO Day 3 LIVE: Studds Accessories IPO subscription status was 14.56x on day 3. The retail portion was subscribed 13 times, and NII portion has been booked 34.24x, Qualified Institutional Buyers (QIBs) portion received 2.55 times bids.

The company has received bids for 7,93,72,425 shares against 54,50,284 shares on offer, at 12:33 IST, according to data on BSE.

1. Largest domestic player of two-wheeler helmets
2. Wide design and product catalogue across price points catering to diverse consumer requirements
3. Advanced manufacturing and D&D capabilities with vertically integrated operations
4. Strong pan-India and global presence supported by an extensive and welldeveloped sales and distribution network and major quality accreditations
5. Capital efficient and sustainable business model
6. Experienced promoters and management team

Studds IPO Day 3 LIVE:

1. Expand and strengthen production capacity & deepen vertical integration
2. Strategically expand into new markets and geographies
3. Increase offerings in the premium helmet segment
4. Expand product portfolio
5. Increase focus on domestic online sales channel

Studds IPO Day 3 LIVE:

1. The sales of their products will suffer if they are unable to maintain and/ or enhance the ‘Studds’ and ‘SMK’ brands, which would have a material adverse effect on the business, financial condition, results of operations and brand equity.
2. The sale of two-wheeler helmets manufactured by them contributes a significant portion to total sales (92.81%, 92.43%, 92.44% and 91.91% for the three months ended June 30, 2025 and Fiscals 2025, 2024, and 2023, respectively). Any decrease in motorcycle sales could have an adverse effect on their business, cash flows, results of operation and financial position.
3. Company’s continued operations at their manufacturing facilities are critical to their business and any disruption, breakdown or shutdown of their manufacturing facilities may have a material adverse effect on their business, financial condition, results of operations and cash flows.

Studds IPO Day 3 LIVE:
1. Rising Disposable Incomes and Middle-Class Expansion
2. Urbanization and Traffic Congestion
3. GST Rate cuts
4. Growing Demand in Rural Areas
5. Shift Towards Electric Vehicles (EVs)

Studds IPO Day 3 LIVE: 1. Expand and strengthen the production capacity and deepen their vertical integration.

2. Strategically expand into new markets and geographies.

3. Increase their offering in the premium helmet segment in the Studds and SMK brand.

4. Expand the product portfolio.

5. Increase focus on domestic online sales channel.

Studds IPO Day 3 LIVE: 1. Largest domestic player of two-wheeler helmets.
2. Advanced manufacturing and D&D capabilities with vertically integrated operations.

3. Strong pan-India and global presence supported by an extensive and well-developed sales and distribution network and major quality accreditations.

Studds IPO Day 3 LIVE: "Studds enjoys a robust pan- India presence and a steadily growing international footprint, enabled by an extensive and well-established sales and distribution network, while its adherence to stringent quality standards is reinforced by multiple major global and domestic accreditations.

At the upper price band company is valuing at P/E of 28.5x to its FY26 annualized earnings and market cap of ₹23,021 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “Subscribe- Long Term” rating to the IPO," said the brokerage.

Studds IPO Day 3 LIVE: Studds Accessories IPO lot size is 25 shares, and the minimum investment amount required by a retail investor is ₹14,625.

Studds IPO Day 3 LIVE: The public issue will open for subscription on Thursday, October 30, and will close on Monday, November 3. The IPO allotment date is likely November 4, and the IPO listing date would be November 7. Studds Accessories shares will be listed on both the stock exchanges, BSE and NSE.

Studds IPO Day 3 LIVE: Studds Accessories IPO GMP today is ₹67. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Studds Accessories share price was indicated at ₹652 apiece, which is 11.45% higher than the IPO price of ₹585.

According to the activities in the grey market over the past seven sessions, the current GMP ( ₹67) indicates a trend towards decline. The minimum GMP recorded is ₹53.00, whereas the maximum GMP reached ₹85, as stated by experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.