India's largest two-wheeler helmet manufacturer, Studds Accessories, is witnessing strong investor interest in its Initial Public Offering (IPO). The Rs 455.49 crore IPO has entered its second day with robust subscription rates, indicating positive market sentiment.

Subscription Status

The IPO has been oversubscribed 1.55 times as of Day 2, with bids received for 84.16 lakh shares against the 54.50 lakh shares on offer. Here's a breakdown of the subscription status across investor categories:

Grey Market Premium

The grey market premium for Studds Accessories has seen an increase, rising from 9% to 10.8%. This suggests an estimated listing price of Rs 648 per share, based on the upper price band of Rs 585.

IPO Details

• Offer Size: Rs 455.49 crore
• Price Band: Rs 557 - Rs 585 per share
• Offer Type: Entirely an offer for sale by existing shareholders
• Closing Date: November 3, 2023
• Expected Listing Date: November 7, 2023

Company Overview

Studds Accessories holds a dominant position in the Indian two-wheeler helmet market:

• Market Share: 27.3% of the domestic market by volume
• Product Range: Manufactures two-wheeler helmets and two-wheeler lifestyle accessories

Financial Performance

Studds reported the following financial results:

Analyst Recommendation

SBI Securities has recommended subscribing to the IPO, citing the company's market leadership and potential growth opportunities from the expected upcycle in the domestic two-wheeler industry.

Investor Considerations

While the IPO has garnered significant interest, especially from retail and non-institutional investors, it's worth noting that Qualified Institutional Buyers have shown limited participation so far, with only a 0.02 times subscription rate for their allocated portion.

Potential investors should consider the company's strong market position, recent financial performance, and growth prospects in the context of the evolving two-wheeler industry before making an investment decision.

Studds Accessories, a prominent domestic manufacturer and seller of two-wheeler helmets in India, has opened its Initial Public Offering (IPO) for subscription. The company has set the price band for its shares at ₹557-585 per equity share, signaling its entry into the public market.

IPO Details

About Studds Accessories

Studds Accessories has established itself as a key player in the Indian two-wheeler helmet market. The company's decision to go public comes at a time when the automotive accessories sector is witnessing increased attention due to growing safety concerns and regulatory pushes for mandatory helmet usage.

Market Position

As a domestic manufacturer, Studds Accessories is positioned to potentially benefit from the demand for quality helmets in India. The company's IPO may attract investors interested in the automotive safety equipment sector, which has seen growth in recent years.

Investor Considerations

Potential investors may consider several factors when evaluating this IPO:

• Market position in the two-wheeler helmet segment
• Potential growth in the safety equipment market
• Regulatory environment supporting helmet usage
• Company's manufacturing capabilities and distribution network

It's important for investors to review the company's Red Herring Prospectus (RHP) for detailed financial information, risk factors, and growth strategies before making an investment decision.

The opening of Studds Accessories' IPO marks a significant event for the company and presents an opportunity for investors to participate in India's automotive safety equipment sector. As always, investors are advised to conduct their own research and consult with financial advisors before making any investment decisions.