Aequs IPO: Aequs Ltd is set to launch its initial public offering (IPO) on Wednesday with an aim to raise nearly ₹922 crore from primary market. Aequs is the only precision component manufacturer in India operating within a single Special Economic Zone to offer fully vertically integrated manufacturing capabilities in the aerospace segment.
The company is also engaged in the manufacturing of consumer electronics, plastics and consumer durables. Here are key details of Aequs IPO:
Aequs IPO Details
Aequs IPO Dates: Aequs IPO opens for subscription on Wednesday, December 3, and will close on Friday, December 5.
Aequs IPO Price Band: Aequs IPO price band is set at ₹118 to ₹124 per share.
Aequs IPO Lot Size: Aequs IPO lot size is 120 shares, and the minimum investment amount required by retail investors is ₹14,880.
Aequs IPO Details: Aequs IPO size is ₹921.81 crore. The mainboard IPO comprises a mix of fresh issue of 5.40 crore equity shares worth ₹670 crore, and an offer-for-sale (OFS) component of 2.03 crore shares amounting to ₹251.81 crore.
Aequs IPO Reservations: The company has reserved 75% of the net offer for Qualified Institutional Buyers (QIB), 10% for Retail Investors and 15% for Non-Institutional Investors (NII).
Aequs IPO Allotment, Listing Dates: Aequs IPO allotment date is likely December 8, and the IPO listing date is December 10. Aequs shares will be listed on both the stock exchanges, BSE and NSE.
Aequs IPO Objectives: The company plans to utilise the net issue proceeds for repayment, in full or in part, of certain outstanding borrowings and prepayment penalties, funding capital expenditure to be incurred on account of purchase of machinery and equipment, funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.
Aequs IPO BRLM, Registrar: JM Financial Ltd. is the book running lead manager and Kfin Technologies Ltd. is the Aequs IPO registrar.
Aequs IPO GMP Today
Aequs shares are commanding a strong grey market premium (GMP today. According to websites tracking the grey market, Aequs IPO GMP today is ₹44.5 per share. This indicates that in the grey market, Aequs shares are trading higher by ₹44.5 apiece than their issue price.
Aequs IPO GMP today signals that the stock is trading at ₹168.5 apiece in the grey market, a premium of 35.89% to the issue price of ₹124 per share.
Aequs IPO Review
Aequs Ltd has embedded itself in the global commercial aircraft component ecosystem, an industry which has high entry barriers. Both the leading OEMs – Boeing and Airbus have large order books for aircraft which should translate into robust demand for components.
“The Aerospace segment is operationally profitable with consistently improving EBITDA margin. The planned debt repayment from the IPO proceeds will result in substantial savings on interest cost which should also result in the company turning profitable at the PAT level. At the upper price band of ₹124, Aequs stock is valued at 8.7x EV/Sales on post issue capital. We recommend investors to Subscribe to the issue at the cut-off price,” said SBI Securities.
Aequs remains loss-making due to high capital intensity, reporting net losses of ₹102.35 crore in FY25, ₹14.24 crore in FY24 and ₹109.49 crore in FY23.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
