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. [•].
Access essential information and documents to make informed investment decisions
Stay updated with upcoming events, conferences, and announcements
Access quarterly and half-yearly financial statements and reports
Download comprehensive annual reports and financial summaries
Access investor presentations, corporate briefings, and slideshows
Our blog provides insightful information about unlisted shares, offering a deeper understanding of how these assets work, their potential benefits, and the risks involved. Whether you're new to unlisted shares or looking to expand your knowledge, we cover topics such as investment strategies, valuation methods, market trends, and regulatory aspects. Stay updated with expert tips and guides to navigate the unlisted share market effectively.
