Studds Accessories shares make weak stock market debut, list at over 3% discount to issue price

Studds Accessories IPO Listing: Contrary to analyst views and grey market trends, shares of Studds Accessories listed at a discount to its initial public offering (IPO) today, November 7.

Studds Accessories' share prices debuted at ₹565 on the NSE, a discount of ₹20 or 3.42% to its IPO price of ₹585. Meanwhile, on the BSE, Studds shares got listed at ₹15 or 2.56% lower than the issue price at ₹570.

The listing missed expectations by a wide margin, as indicated by the latest grey market premium. Studds Accessories IPO GMP today was ₹45, signalling around 8% listing pop.

Studds Accessories IPO Details

The initial share sale had also witnessed a hefty demand from all categories of investors, suggested BSE data. Studds Accessories IPO was booked 73.25 times as it garnered bids for 39.92 crore shares as against 54.4 lakh shares on offer.

Among investor categories, Qualified Institutional Buyers (QIBs) segment fetched 159.99 times subscription. The quota for non-institutional investors got subscribed 76.99 times, and that of retail investors attracted 22.09 times subscription.

Studds Accessories IPO, worth ₹455 crore, was priced in the range of 557-585 per share, valuing the company at ₹2,300 crore at the upper end of the range.

The IPO was entirely an offer for sale (OFS) of 77.86 lakh shares. Since the issue is entirely an OFS, Studds will not receive any proceeds, and all funds will go to the selling shareholders.

Founded in 1975, Studds is a leading manufacturer and marketer of two-wheeler helmets and motorcycle accessories. The company operates under two primary brands — ‘Studds’, which serves the mass and mid-market segments, and ‘SMK’, introduced in 2016, which caters to premium motorcyclists.

In addition to its own brands, Studds manufactures helmets for global names such as Jay Squared LLC (sold under the Daytona brand in the US) and O’Neal, whose products are distributed across Europe, the United States, and Australia.

The company also supplies helmets and accessories to prominent motorcycle OEMs, including Hero MotoCorp, Honda Cars India, Suzuki Motorcycle India, Eicher Motors (Royal Enfield), and India Yamaha Motor. Furthermore, Studds serves government and institutional clients, such as the Central Police Canteens and the Canteen Stores Department (CSD).

IIFL Capital Services and ICICI Securities acted as the book-running lead managers to the issue.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.