Delhi, 7 November (H.S.): Shares of helmet manufacturer Studds Accessories made a lackluster debut on the stock exchanges Friday, disappointing its IPO investors. The company's shares, issued at an IPO price of ₹585, listed at ₹570 on the BSE, a discount of nearly 3%, and at ₹565 on the NSE. Despite a minor recovery supported by some buying interest post-listing, the stock failed to cover the losses for IPO investors.
By 10:30 AM, the shares were trading at ₹574.60, leaving IPO investors with a loss of 1.78%.The ₹455.49 crore IPO of Studds Accessories was open for subscription between October 30 and November 3.
The issue had received a strong response from investors, getting oversubscribed by 73.25 times. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 159.99 times, while the Non-Institutional Investors (NII) category saw a subscription of 76.99 times. The retail portion was subscribed 22.08 times.
The IPO was a complete Offer for Sale (OFS) of 7,786,120 shares with a face value of ₹5 each.According to the Draft Red Herring Prospectus (DRHP) filed with the market regulator SEBI, the company's financial health has been strengthening. The company reported a net profit of ₹33.15 crore in FY23, which increased to ₹57.23 crore in FY24 and further jumped to ₹69.64 crore in FY25.
During this period, its revenue grew at a Compound Annual Growth Rate (CAGR) of over 11% to reach ₹595.89 crore. For the first quarter of the current fiscal year (April-June 2025), the company has already posted a net profit of ₹20.25 crore on revenue of ₹152.01 crore.The company's debt has fluctuated over the period.
At the end of FY23, its debt stood at ₹30.58 crore, which reduced significantly to ₹61 lakh by the end of FY24. However, it rose again to ₹2.91 crore by the end of FY25 and remained at that level at the end of the first quarter of FY26.The company's reserves and surplus have shown consistent growth, increasing from ₹328.18 crore at the end of FY23 to ₹377.57 crore in FY24 and ₹429.80 crore in FY25.As of June 2025, the reserves and surplus stood at ₹450.09 crore.
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Hindusthan Samachar / Jun Sarkar
