Studds Accessories Ltd is not a new name in the two-wheeler helmet industry. The company showed impressive growth in the last five years and established itself as an industry leader. Studds started its journey in 1972 and manufactures more than 7 million helmets yearly.
It has already filed DRHP with SEBI for an IPO, which comprises fresh issuance of shares worth Rs 98 crore and offers for sale of 39.39 lakhs equity shares. The IPO shares of Studds are a great opportunity for investors who are planning a long-term investment in the company.
There are various questions in investors’ minds, like how much Studds Accessories share price will be after its IPO. For this, we have to wait till further announcement. In this blog, we will delve into the possible plans of Studds for launching its IPO.
Details Of Studds Accessories Ltd Initial Public Offering(IPO)
The upcoming IPO of Studds Accessories Ltd will likely be listed on the prominent stock exchanges- BSE and NSE. There is no official statement released from the Studds regarding the exact date and day of the IPO launch. However, the company already acquired in-principle approvals from both stock exchanges.
As per the DRHP filing with SEBI, Studds Accessories Ltd offers a fresh issue of the share, which will be of Rs 98 crore. However, how much the quantum of shares the company will offer via its IPO has not exactly been released. The equity shares held by the promoter might be 3,939,00. It is also interesting to see how the future plans of the IPO will impact Studds helmet share price in the grey market.
The performance of the Studds unlisted shares remained positive in the last few years. The company also works towards its business growth, like setting up a new manufacturing plant in Haryana and expanding the operational process. The company shared limited details regarding its IPO, which might launch next year.
Possible Plans Of Studds For Launching Its IPO
For any company, an IPO is a crucial phase in the business lifecycle and requires preparation. Whether it’s a small startup or unicorn, launching an IPO means getting listed on the stock exchange and offering equity shares for sale to the public. Studds Accessories, the largest helmet manufacturer, also plans to launch the IPO without any hurdles. Here are the possible plans of the company regarding its upcoming IPO:
Keep Financials Updated
The majority of companies struggle with unmanaged finances, due to which their IPO gets delayed. Studds Accessories Ltd will look to keep the balance sheet and other financials updated. For this, the company is expected to keep track of its non-performing assets, total cash burn, and liabilities. It also works on the required documents updated when launching its IPO.
Decide Favourable Timing
Since the company has not disclosed exact data and timing about its IPO launch, there are chances that Studds is looking at favourable market conditions and timing. It is a major part of the company’s IPO planning as unfavourable conditions can badly impact its reputation and Studds Accessories share price. The company is also looking to hire a financial advising firm or expert.
Finalising Shares Distribution
When launching an IPO, a company pre-decide the distribution of the shares for retail investors, venture capitalists, angel investors, etc. The total equity shares offered during an IPO contain the percentage each of these shareholders can get. In most cases, companies offer a large portion of IPO shares to retail investors. Studds Accessories Ltd future plans for an IPO will finalise the share distribution pattern.
These are the possible plans of Studds for launching an IPO. For investors, it is essential to keep an eye on Studds helmet share price movement in the grey market. Apart from this, shareholders who have unlisted shares of Studds may get early access to the IPO shares at the current face value.
Is It Beneficial To Invest In Studds Upcoming IPO?
Investing in an IPO of Studds can benefit you in various aspects. First, it allows you to invest in the helmet industry leader. An IPO allows you to become a part of the company’s growth, which can make you a high profit in the long run. Since the company has experienced promoters and management, Studds is expected to perform better than its competitors.
Apart from this, the financial performance of the Studds in the grey market also indicates its future growth. Various investors are planning to invest in Studds Accessories IPO. At the time of the IPO launch, there might be limited availability of the Studds IPO shares, which might affect your investment plans. That’s why it is recommended to buy Studds unlisted shares and get early access to the IPO shares when the company gets listed on the stock exchange.
You can plan your investment in Studds pre-IPO shares using online trading platforms like Stockify. There, you can check Studds Accessories share price and financial performance and get guidance from brokers to make a profitable investment.
Invest in Studds pre-IPO shares now!