Studds Accessories mobilises Rs 137 cr from anchor investors ahead of IPO

New Delhi, Oct 29 (PTI) Helmets manufacturer Studds Accessories on Wednesday said it has raised nearly Rs 137 crore from anchor investors, ahead of its initial share sale opening for public subscription.

The anchor investor round saw participation from HDFC Mutual Fund (MF), Nippon India MF, ICICI Prudential MF, Edelweiss MF, ITI MF, Kedaraa Capital Public Markets Fund I, Carnelian India Amritkaal Fund, Pinebridge India Equity Fund, and Edelweiss Life Insurance Company, according to a circular uploaded on BSE's website.

As per the circular, Studds Accessories has finalised the allocation of 23,35,836 equity shares to anchor investors at Rs 585 per share, aggregating to about Rs 136.64 crore.

Out of the total anchor allocation, 18,55,346 equity shares, or 79.43 per cent, of the total were allotted to six domestic mutual funds across 10 schemes, collectively amounting to about Rs 108.37 crore.

The company's Rs 455 crore IPO is scheduled to open on October 30 and conclude on November 3. The firm has set a price band of Rs 557-585 per share, valuing it at around Rs 2,300 crore at the upper end of the range.

The IPO will comprise only an offer for sale (OFS), with the promoter group and other shareholders offloading 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 designs, manufactures, markets, and sells two-wheeler helmets under the 'Studds' and 'SMK' brands, as well as a range of motorcycle accessories, including luggage, gloves, rain suits, riding jackets, eyewear, and helmet locks.

While Studds caters to the mass and mid-market segments, SMK, launched in 2016, targets premium motorcyclists.

The company's products are sold across India and exported to over 70 countries, with key markets spanning the Americas, Asia (excluding India), Europe, and other regions. It also manufactures helmets for international brands such as Jay Squared LLC (sold under the Daytona brand in the United States) and O'Neal, which are distributed across Europe, the US, and Australia.

The company supplies products to leading motorcycle OEMs, including Hero MotoCorp, Honda Cars India, Suzuki Motorcycle India, Eicher Motors (Royal Enfield), and India Yamaha Motor.

It also caters to government and institutional buyers, such as the Central Police Canteens and the Canteen Stores Department.

The public issue will be managed by IIFL Capital Services and ICICI Securities, with shares expected to list on the stock exchanges on November 7. PTI SP BAL BAL