studds accessories ipo gmp

 

Company and IPO snapshot

Studds Accessories is a Haryana-based manufacturer of two-wheeler helmets and accessories. It is described as India’s largest helmet manufacturer by revenue in FY24, and the world’s largest by volume in 2024. Groww+3InvestorZone+3Sharescart+3 The company was incorporated in 1983 and has strong presence in domestic as well as export markets. Groww+2The Economic Times+2

The IPO of Studds Accessories is scheduled to open on October 30, 2025 and close on November 3, 2025 (for public subscription). The Financial Express+2The Hans India+2 Some key parameters:

• Price band: Rs 557 to Rs 585 per share. Goodreturns+2The Hans India+2

• Issue size: About Rs 455.49 crore (all through Offer for Sale, i.e., no fresh issue from the company) via about 77.86 lakh shares. Goodreturns+2The Hans India+2

• Lot size: Minimum 25 shares for retail. Goodreturns+1

• The IPO is purely OFS (Offer for Sale) – meaning the company itself will not receive the funds; existing shareholders (promoters etc) will sell shares. The Hans India+1

What is the Grey Market Premium (GMP) & what it is for Studds

The Grey Market Premium (GMP) is an unofficial indication of how much the shares of an upcoming IPO are trading in the unlisted/grey market above the issue price band. It gives a rough gauge of investor sentiment, though it is not a regulated indicator and should be taken with caution. The Week+1

For Studds Accessories:

• Some reports indicate the GMP at about Rs 55 on October 27, which (on the upper price band of Rs 585) implies a possible listing price around Rs 640 — about a 9.4% premium. The Hans India+1

• Other data show a higher figure: some sources say GMP of ~15% (which would imply ~Rs 85 premium above the issue price). mint+1

• For example one article notes the GMP “near 10%”. The Economic Times

So the GMP is in the ballpark of Rs 55-85 per share above the issue price band according to current market chatter.

Interpretation & implications

What does this GMP tell us — and what caveats should investors keep in mind?

Positives / What it suggests

• A positive GMP means there is speculative demand in the grey market, implying confidence or at least interest among some investors in the company’s listing potential.

• For Studds, given its leadership in helmets & two-wheeler accessories, and its export footprint, there is a credible business story (which may support listing interest).

• The fact it is an OFS might appeal to investors who see value in getting a stake in an established business rather than funding new expansion (though that can also be a negative).

Caveats / What to watch out for

• GMP is unofficial, unregulated and purely indicative. The actual listing price could differ significantly. Many variables (market conditions, subscription levels, sentiment, global cues, listing day movement) will influence. The Week

• Since this is an OFS only (no fresh capital going into the business), the question is: what does the listing offer to the business in terms of growth? Investors should evaluate business fundamentals rather than rely purely on listing pop.

• Business-specific risks: For Studds, over 90% of its sales are reportedly from helmets; motorcycle sales downturns, regulatory changes (helmet safety standards), competition or capacity utilisation issues could affect results. The Hans India+1

• The cost of investing: With the upper band Rs 585 and GMP of Rs 55 implied (i.e., potential listing ~Rs 640), the margin of safety is slim unless you believe in the medium/long term and are comfortable holding.

Business snapshot & opportunities

Looking slightly beyond just the IPO mechanics, the business of Studds presents some interesting features:

• It exports to many countries, and has brands like “Studds” (mass-market) and “SMK” (premium) in its portfolio. Groww+2The Hans India+2

• The two-wheeler market in India remains large, and helmet/gear penetration is increasing (safety, regulation, rider gear trends) which can be a tailwind. Sharescart

• Financially, according to one source, revenue in FY25 ~ Rs 596 crore and PAT ~ Rs 69.64 crore; earlier years fewer. The Financial Express

But also:

• Helmet business is cyclical with vehicle sales.

• Majority reliance on one product category (helmets) may limit diversification — though they are expanding accessories.

• Being an OFS without fresh funds raises the question of how growth will be funded post-listing.

Final thoughts

The upcoming IPO of Studds Accessories shows some promising signals: the GMP is positive (indicative of decent investor interest), the business is established and leader in its niche, and the timing (two-wheeler safety/accessories sector) seems reasonable.

For investment decision making:

• If you believe in the business long-term and are comfortable with the price band and possible listing gain, this IPO may be interesting.

• But if you are purely looking for a short-term listing gain based on GMP, you should remember that GMP is not a guarantee – actual listing outcome could underperform.

• Always look at fundamentals: business model, growth drivers, margins, risk factors, valuations.

• Given the upper band of Rs 585 and implied listing of ~Rs 640 (or more, depending on GMP movement), make sure you are comfortable with the entry price and the lock-in / listing risk.

In summary: The GMP for Studds Accessories’ IPO currently suggests a listing gain of roughly around 9-15%, depending on which estimate you accept. That is a healthy premium but not massive. If the company delivers both operationally and the broader market is supportive, the listing could go well — but as always, IPOs carry risks and past GMPs have not always guaranteed sustained post-listing performance.