The initial public offering (IPO) of Studds Accessories Ltd., one of the world's largest manufacturers of motorcycle helmets, kicked off with impressive momentum on its first day. The issue was met with robust demand from investors, getting subscribed 1.54 times by the end of day one, signaling strong market confidence.
Breaking Down the Subscription Numbers
The enthusiastic response was led by non-institutional investors (NIIs), whose portion was booked a solid 2.18 times. Retail investors, the backbone of any public issue, showed healthy participation, subscribing their reserved quota 1.27 times. The qualified institutional buyers (QIBs) portion was subscribed 0.26 times, a figure that often sees a significant surge on the final day of the offer.
What is the Buzz in the Grey Market?
Adding to the positive sentiment, the grey market premium (GMP) for Studds Accessories shares has been trending strongly. The premium indicates the price at which shares are being traded informally before their official listing. A healthy GMP often points towards a potential listing gain, making it a key metric watched by IPO enthusiasts.
IPO Details at a Glance
The public offer is entirely a fresh issue of equity shares aggregating up to ₹1,000 crore, with no offer-for-sale (OFS) component. This means all the proceeds will go directly to the company to fuel its future growth plans.
Price Band: The company has set a price band of ₹384 to ₹404 per share for the IPO.
Lot Size: Investors can bid for a minimum of 37 shares and in multiples thereafter.
IPO Dates: The subscription window for the IPO opened recently and is scheduled to close soon. Investors have a limited window to participate in this public issue.
Why is the Studds IPO Generating So Much Interest?
Studds Accessories is not just another company going public. It holds the distinction of being the world's largest-selling helmet brand by volume. With a strong global footprint, exporting to over 50 countries, and a trusted brand name in India, the company presents a compelling investment proposition in the growing two-wheeler safety market.
The strong Day 1 subscription, coupled with a positive grey market signal, sets an optimistic tone for the rest of the IPO period. All eyes will now be on the final subscription numbers and the eventual listing date.
