Aequs Ltd, a leading precision component manufacturer in the aerospace sector, is set to launch its maiden public issue on Wednesday, aiming to raise about ₹921.81 crore from the primary market. The company is India’s only precision component producer operating within a single Special Economic Zone (SEZ) with fully integrated manufacturing capabilities dedicated to aerospace.
Beyond aerospace, Aequs also supplies components for consumer electronics, plastics, and consumer durables, expanding its presence across diversified manufacturing segments.
Aequs IPO: Key Details
IPO Schedule:
The public issue will open for subscription on December 3 and will close on December 5.
Price Band:
Shares will be offered in the range of ₹118–₹124 per equity share.
Lot Size:
Retail investors can bid for a minimum of 120 shares, requiring an initial investment of ₹14,880 at the upper price band.
Issue Structure:
The total issue size is ₹921.81 crore, comprising:
- Fresh issue: 5.40 crore shares worth ₹670 crore
- Offer-for-sale (OFS): 2.03 crore shares aggregating ₹251.81 crore
Investor Quota:
- QIBs: 75%
- Retail Investors: 10%
- NIIs: 15%
Allotment & Listing:
Share allotment is likely on December 8, with listing expected on December 10 on both BSE and NSE.
Use of Proceeds
The company will deploy the fresh issue funds for:
- Repayment and prepayment of certain borrowings
- Capital expenditure for machinery and equipment
- Funding inorganic growth via acquisitions
- Strategic initiatives and general corporate purposes
JM Financial is the book-running lead manager, while Kfin Technologies is the registrar for the issue.
Aequs IPO GMP Today
Aequs is witnessing strong interest in the unlisted market. The IPO’s grey market premium (GMP) stands at ₹44.5 per share, indicating a potential listing price of ₹168.5, nearly 36% above the upper issue price.
Aequs IPO: Analyst View
Analysts highlight Aequs’ entrenched position in the global commercial aircraft components supply chain, a space dominated by high entry barriers. With Boeing and Airbus carrying substantial order backlogs, demand visibility for component manufacturers like Aequs remains strong.
The aerospace division has shown stable operational performance with improving margins. SBI Securities notes that debt reduction through IPO proceeds could significantly cut interest expenses, aiding the company’s move toward profitability at the PAT level.
At the upper price band, Aequs is valued at 8.7x EV/Sales on a post-issue basis. SBI Securities has recommended investors subscribe to the IPO at the cut-off price.
Despite strong business fundamentals, Aequs remains loss-making due to its capital-intensive model, posting net losses of ₹102.35 crore (FY25), ₹14.24 crore (FY24) and ₹109.49 crore (FY23).