KuberGrow Team Studds Accessories, a leading two-wheeler helmet maker of India, is moving a step in the direction of becoming public. The company has formally filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for raising funds by going public.
According to the agreement, Studds will offer up to 7,786,120 equity shares through an offer for sale (OFS) wherein each share will have a face value of ₹5. The action is being seen as a significant one for the company in an attempt to improve its market position and build its brand in the stock markets.
Promoters Chand Khurana and Sidhartha Bhushan Khurana shall also be a part of the OFS. The IPO shall utilise the stock exchange listing with proceeds accruing to the selling shareholders in full after costs, and not a single penny that reaches the company from the issue.
Studds produces, makes, and sells two-wheeler helmets under Studds and SMK brand and accessories like luggage, gloves, riding jackets, rainwear, and eye wear under Studds brand. They sell their products in India and more than 70 foreign countries such as Americas, Europe, and Asia. They also produce helmets for Jay Squared LLC of “Daytona” brand of United States and O’Neal and supply them to United States, European, and Australian markets.
IIFL Capital Services Limited and ICICI Securities Limited are the book running lead managers to the issue. This is the second attempt at IPO by Studds following its having invoked preliminary draft papers in 2018 when it had invoked preliminary draft papers in order to raise ₹98 crore through a primary issue of shares and an OFS of up to 3,939,000 equity shares.
