Studds Accessories, a leading manufacturer of two-wheeler helmets and accessories, made its debut on the National Stock Exchange (NSE) today, with shares listing below the initial public offering (IPO) price.

Listing Details

The company's shares opened at ₹565.00 on the NSE, representing a discount of ₹20.00 or 3.42% to the issue price of ₹585.00. This tepid debut reflects a cautious sentiment among investors on the listing day.

Market Implications

The below-par listing of Studds Accessories shares may be attributed to various factors, including overall market conditions, investor sentiment towards the auto accessories sector, or specific concerns related to the company's valuation.

It's important to note that the initial listing price does not necessarily indicate the long-term performance of the stock. Investors and market participants will likely be watching the stock's performance in the coming days to gauge market reception.

About Studds Accessories

Studds Accessories is a prominent player in the two-wheeler helmet and accessories market in India. The company's IPO had garnered attention due to its strong brand presence and the growing focus on road safety in the country.

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.