Aequs IPO: The primary market mojo remains high as three new initial public offerings (IPOs) are set to hit Dalal Street this week on December 3, with Aequs’ ₹922 crore share sale among them.
Ahead of the share sale, Aequs’ grey market premium (GMP) is trending higher in signs of strong demand for the company, backed by several marquee names like Amicus Capital, Amansa Capital, Catamaran — the family office of Infosys founder N R Narayana Murthy —, and Sparta Group.
Aequs IPO GMP today is ₹43.5 — the highest so far. At the prevailing GMP and upper end of the price band, Aequs listing price could be ₹167.5, a premium of 35.08%.
The company on Friday announced the ₹118-124 per share”>price band of ₹118-124 per share, valuing at over ₹8,300 crore at the upper end of the range.
Aequs IPO: 10 things from RHP
Ahead of the share sale this week, here are the 10 key things that investors should know about Aequs from the RHP:
1. Aequs IPO dates
Aequs IPO will open for bidding on Wednesday, December 3 and close on Friday, December 5. The anchor book will be available for bidding a day before the offer opens, i.e. December 2. Shares of Aequs will likely list on Dalal Street on December 10.
2. Aequs IPO structure
According to the RHP, Aequs IPO is a combination of fresh share sale of ₹670 crore and an offer for sale of up to 2.03 crore shares by the promoter and investor selling shareholders.
3. Who are the sellers in Aequs IPO?
The investors looking to offload stake in Aequs via the OFS include Amicus Capital Private Equity and Amicus Capital Partners. Additionally, Melligeri Private Family Foundation and Raman Subramaniam are the promoters and individual selling shareholders, respectively.
4. Aequs IPO objective
Aequs plans to use the funds raised from the fresh share sale for repayment of certain borrowings availed by the company and its subsidiary, funding the capex for purchase of machinery and equipment and inorganic growth through unidentified acquisitions, along with general corporate purposes.
5. Who are the listed peers of Aequs?
The listed peers of Aequs include Azad Engineering, Unimech Aerospace, Amber Enterprises, Kaynes Technology, Dixon Technologies and PTC Industries, as per the RHP.
6. Aequs financials
The company’s financial performance remains rocky, with revenue growth moderating to ₹959 crore in FY25 from ₹988 crore in FY24. The figure stood at ₹841 crore in FY23. Meanwhile, the company is loss-making, recording a loss of ₹102.4 crore in FY25 versus a loss of ₹12.14 crore in FY24. Meanwhile, in FY23, the figure stood at ₹108.7 crore.
7. Who are Aequs’ customers?
Aequs has long-standing relationships with some high-entry-barrier customers like Airbus, Collins Aerospace, Spirit Aerosystems Inc., Safran and Boeing in the Aerospace Segment, and Hasbro, Spinmaster, Wonderchef, and Tramontina in the Consumer Segment. The company said that over the last few years, it has established itself as a Tier-1 supplier for such OEM customers.
8. Risks of investing in Aequs IPO
According to the RHP, a significant portion of the net external revenue from the aerospace segment (89.19% for FY25). Any decrease in demand for products within the segment may adversely affect our business, results of operations, financial condition and cash flows.
Additionally, it is dependent on ten of its largest customers for a significant portion of its revenue, i.e. 88.57% for FY25; any loss of a major customer can impact its financial condition.
9. About Aequs
Aequs is a vertically integrated precision component manufacturer with manufacturing capabilities in the Aerospace Segment and Consumer Segment. It operates units in three engineering-led, vertically integrated precision manufacturing ecosystems, which enable it to produce complex products for its global OEM customers across the aerospace and consumer sectors. The product portfolio comprises components for engine systems, landing systems, cargo and interiors, structures, assemblies, and turnings for its aerospace clients; and consumer electronics, plastics, and consumer durables for its consumer clients.
10. BRLMs
The book running lead managers to the IPO are JM Financial, IIFL Capital Services, and Kotak Mahindra Capital Company.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
