Helmet maker Studds Accessories receives SEBI approval to float IPO

SEBI Nod for Studds Accessories’ 77.86 Lakh Share Offer-for-Sale IPO.

Expert Analysis :

• SEBI Approval Secured: Studds Accessories received SEBI’s observation letter on July 8, allowing it to launch its IPO within a year.

• IPO Structure: The IPO comprises a complete offer-for-sale of 77.86 lakh shares by promoters Madhu Bhushan Khurana (37.95 percent), Sidhartha Bhushan Khurana (31.79 percent), and Chand Khurana (8.35 percent).

• No Fresh Capital: The company will not receive any funds from the IPO as all proceeds go to existing shareholders.

• Global Reach: Studds sells products in 70+ countries and manufactures for Jay Squared (Daytona) and O’Neal in the US, Europe, and Australia.

• Promoter Holding: Promoters currently hold 78.78 percent of the company, while public shareholders hold the remaining 21.22 percent.

• Previous IPO Attempt in 2018: Studds filed draft papers in 2018 for an IPO comprising a Rs 98 crore fresh issue and 39.4 lakh OFS shares but did not execute the plan.

• Merchant Bankers: IIFL Capital Services and ICICI Securities are managing the IPO.

• Brand Portfolio: Studds markets helmets under Studds and SMK brands, with accessories like gloves and riding gear under the Studds brand.