Event Date: N/A
Studds Accessories Limited, established in 1983, is launching its initial public offering (IPO) of up to 7,786,120 Equity Shares, each with a face value of ₹5. Promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana are offering up to 3,800,000 shares and 800,000 shares, respectively. Chand Khurana, a Promoter Group Selling Shareholder, is offering up to 2,100,000 shares. Other Selling Shareholders, including Sanjay Leekha, are offering the remaining shares.
The IPO aims to list the Equity Shares on BSE Limited and National Stock Exchange of India Limited. The Offer Price will be determined through book building. The Offer is structured with allocations for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs), in accordance with Securities and Exchange Board of India (SEBI) regulations.
Risks associated with the first-time offering, lack of a formal market for the shares, and the determined Offer Price not being indicative of post-listing market prices are detailed. General investment risks involving equity and equity-related securities are emphasized, urging investors to review risk factors carefully. The company, and the Selling Shareholders individually, assume responsibility for the information's truth and accuracy. IIFL Capital Services Limited and ICICI Securities Limited are the Book Running Lead Managers. MUFG Intime India Private Limited is the Registrar to the Offer.
The document highlights the company's registered and corporate office, contact information for key personnel, and promoters. It also includes definitions of key terms and industry-related abbreviations used throughout the prospectus. The company designs, manufactures, markets, and sells two-wheeler helmets and accessories under the Studds and SMK brands, selling products pan-India and internationally, with key exports across the Americas, Asia (excluding India), and Europe. The company also manufactures helmets for Jay Squared LLC, sold under the Daytona brand in the United States, and for O'Neal, supplying to European, US and Australian markets.
Global two-wheeler helmet witnessed a CAGR of 4.5% in unit sales between CY19 and CY24, with robust demand in Asia-Pacific. Growth is projected at 5.1% in value between CY24 and CY29, driven by increasing urbanization, incomes, safety awareness, and helmet use mandates. Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and Shilpa Arora are listed as the company's promoters. The offer size is summarized, noting authorized share capital, the offer for sale details, and associated percentage breakdowns for various investor categories. The document also emphasizes that investors should carefully review risk factors before making investment decisions.
Key risk factors include brand maintenance and enhancement, reliance on two-wheeler helmet sales, manufacturing facility operations, raw material procurement, product design and catalogue updates, dependency on raw material suppliers and OEMs, potential loss of intellectual property rights, and delayed filing of Form FC-GPR. Additional risks include potential non-compliance with statutory regulations, operational risks, and material litigation or developments. Contingent liabilities are summarized, and a disclaimer is provided regarding the company's liability to quantify. Furthermore, a summary of related party transactions is provided, outlining transactions with promoters, promoter group, and other selling shareholders.
The restated consolidated financial statements are summarized, including equity share capital, net worth, revenue from operations, total income, restated profit, basic/diluted EPS, net asset value per equity share, and total borrowings. Qualifications of the auditor, if any, are noted. A summary of outstanding litigation and material developments is provided, highlighting actions involving the company, subsidiary, directors, key managerial personnel, and promoters. The offer includes up to 7,786,120 equity shares of face value 5 each aggregating up to ₹[] million. This consists of an offer for sale. The face value of each equity share is ₹5 and the offer price is [] times the face value of the equity shares. Regarding top shareholders of our company, as of the date of this draft red herring prospectus, Madhu Bhushan Khurana has 14,935,560 equity shares (37.95%), Sidhartha Bhushan Khurana has 12,509,360 equity shares (31.79%), and Chand Khurana has 3,287,400 equity shares (8.35%). Our Company is in compliance with certain provisions of securities laws. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date i.e. [•].
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Yes, unlisted shares can eventually be listed on a stock exchange through an Initial Public Offering (IPO). This process allows the company to offer its shares publicly and be traded on major exchanges, potentially increasing liquidity and visibility.
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The value of unlisted shares is typically determined by private transactions, financial reports, and market demand. We provide the latest updates on share prices of unlisted companies, giving you the most accurate valuation available.
The minimum investment for unlisted shares can vary depending on the company and broker. Generally, the minimum investment is higher than for listed stocks, but we provide detailed information to help you make the best investment decisions.
Yes, unlisted shares may pay dividends if the company has declared them. However, since these companies may be in their growth stage, dividend payments are not always guaranteed. It's important to check the company's financial health before investing.
It's important to conduct thorough research on the company's financials, management, market potential, and overall business model. You can also seek professional advice from experts to help you choose unlisted shares with strong growth prospects.
Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.
