Aequs IPO Sees Strong Demand on Final Day

The Aequs IPO witnessed strong investor interest on the final day of bidding as subscription numbers surged across categories. The company, known for its precision engineering and aerospace manufacturing capabilities, aims to utilise the IPO proceeds for capacity expansion, debt repayment, and general corporate purposes.

Overall Subscription Strengthens

As of 11:16 am, the Aequs IPO was subscribed 5.43 times overall, indicating healthy demand from investors across the board.

• Retail investors continued to lead the way with an impressive 17.70 times subscription.

• Non-Institutional Investors (NII) subscribed their portion 6.52 times.

• The employee-reserved category received bids 9.34 times, reflecting strong internal confidence in the company’s long-term prospects.

• Qualified Institutional Buyers (QIBs) subscribed 0.67 times, though institutional demand typically picks up closer to market closing hours on the final day.

This broad-based interest signals solid market confidence in Aequs’ business model and growth potential.

Grey Market Premium Indicates Strong Listing Expectations

The grey market premium (GMP) for the Aequs IPO currently stands at ₹45.5. Based on this premium, the estimated listing price works out to approximately ₹169.5, suggesting potential listing gains of around 36.69% over the upper end of the price band.

While a strong GMP signals positive sentiment among unofficial market participants, it remains an informal indicator. Actual listing performance will depend on overall market trends and final institutional demand.

Aequs: An Integrated Precision Manufacturing Company

Aequs is an integrated manufacturing services provider specialising in precision engineering for the aerospace, automotive, and industrial sectors.

Operations and Capabilities

• The company operates from a single SEZ in India, offering end-to-end manufacturing capabilities.

• Its offerings include machining, forging, surface treatment, and assembly.

• It maintains a global footprint, with manufacturing facilities in India, the United States, and France.

Long-Term Global Partnerships

Aequs works closely with top global OEMs such as:

• Airbus

• Boeing

• Safran

• Collins

• Spirit AeroSystems

Many of these relationships extend over 15 years, providing Aequs with stability, visibility, and a strong position in a high-entry-barrier industry.

Use of IPO Proceeds

The company plans to deploy the IPO funds towards:

• Expanding its manufacturing capacity

• Repaying certain borrowings

• Strengthening its position in the global aerospace supply chain

Aequs aims to capitalise on the global shift towards outsourcing precision components, where demand continues to rise.

Also Read: Meesho IPO Subscribed 3x on Day 2; Retail Portion 5x Booked as GMP Signals Strong Listing

Expert Views: Should Investors Subscribe?

According to Rajan Shinde, Research Analyst at Mehta Equities Ltd, the Aequs IPO presents an attractive opportunity to participate in one of India’s most advanced aerospace precision manufacturing platforms.

Key Positive Factors Highlighted by Shinde

• Aequs is the only Indian manufacturer operating from a single SEZ with fully integrated aerospace capabilities.

• The company operates in a high-entry-barrier industry with increasing global outsourcing opportunities.

• Long-standing customer relationships with major aerospace companies provide strong business visibility.

Financial Performance

Shinde noted that Aequs’ financial performance has been mixed:

• FY24 revenue grew 18.8%

• FY25 revenue declined 4.2%, affected by softness in the consumer division and strategic transitions

• The core aerospace segment continues to show positive momentum

Valuation

At the upper price band, the IPO seeks a market capitalisation of ₹8,316 crore, translating to a price-to-book value of around 5.7 times.
Shinde pointed out that this valuation appears reasonable compared to listed peers that trade at an average of around 10 times.

Long-Term Potential

The analyst highlighted strengths such as:

• Diversified product portfolio

• Strong joint ventures with Magellan Aerospace, Aubert & Duval, and Tramontina

• Ability to leverage aerospace capabilities into high-volume consumer products, supporting margin expansion

Shinde recommends subscribing to the IPO with a long-term investment perspective.

Disclaimer

The views, opinions, recommendations, and suggestions mentioned from experts/brokerages are their own and do not reflect the views of India Today Group. Investors should consult a qualified broker or financial advisor before making any investment or trading decisions.

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