Aequs IPO is all set to open for subscription on Wednesday, December 3. The ₹922 crore mainboard IPO will close for
Aequs is the only precision component maker in India that operates from a single Special Economic Zone, offering fully
vertically integrated manufacturing for the aerospace industry.
It also manufactures products in the consumer electronics, plastics, and consumer durables segments.
Aequs IPO subscription status
The bidding for Aequs IPO will begin on Wednesday, December 3, at 10:00 am.
The shares of Aequs IPO are commanding a strong premium in the grey market. Aequs IPO shares are currently trading at a
premium of ₹46.5 in the grey market, as per Investorgain. This means that the GMP of the Aequs IPO is +46.5.
The estimated listing price of the Aequs IPO is likely to be ₹170.5, which is 37.50% higher than the IPO price of ₹124.
The lowest GMP is ₹18, meanwhile the highest GMP is ₹46.50.
Brokerage firm Anand Rathi has given a ‘subscribe for long-term’ rating to Aequs IPO, while saying that the company aims
to deepen wallet share with existing aerospace customers by moving up the value chain, while also broadening its
customer base in the Aerospace Segment.
“At the upper price band, the company is valued at 8.9x FY25 P/S, implying a post-issue market cap of ₹83,161 million
and an EV/EBITDA of 122.9x. Additionally, it plans to expand its consumer electronics portfolio by leveraging advanced
aerospace capabilities to scale manufacturing, grow its customer base, and increase wallet share. The consumer business
adds significant upside, though smooth execution is required, which will help them achieve profitability in future.
Considering these factors, the IPO appears fully valued and is rated “Subscribe – Long Term,” the firm said in a note.
Meanwhile, brokerage firm Swastika has also given a ‘subscribe’ rating to the Aequs IPO. The firm said, “A unique,
high-barrier entry into the aerospace & defence supply chain. The company is currently loss-making with negative return
ratios. The majority of IPO proceeds will be used to pay off debt, not for new expansion. Priced significantly lower
than peers on a Price-to-Book basis (~9.9x vs peers at 15-20x). Aggressive investors can park some money for the long
term to play a niche theme.”
Aequs, a leading Indian aerospace precision manufacturing company, is set to launch its ₹922-crore IPO on Wednesday,
capitalising on a period of global supply-chain realignment and growing policy support for domestic production.
The offer comprises a fresh issue of ₹670 crore and an offer for sale of ₹251.81 crore, with a price band of ₹118–124
Most of the funds raised will be used to strengthen the company’s balance sheet. About ₹433 crore is earmarked for debt
repayment across the parent firm and three subsidiaries, while ₹64 crore will be invested in new machinery. Additional
capital will be reserved for acquisitions and general corporate needs.
Aequs’ IPO comes with a lot size of 120 shares, requiring retail investors to invest at least ₹14,880.
Of the total offering, 75% is earmarked for Qualified Institutional Buyers (QIBs), 10% for retail investors, and 15% for
Non-Institutional Investors (NIIs).
The share allotment is expected on December 8, while the listing is scheduled for December 10 on both the BSE and NSE.
JM Financial Ltd. is acting as the lead book-running manager, and Kfin Technologies Ltd. is serving as the IPO
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