Aequs, a precision component manufacturer for aerospace and electronics, has launched its Rs 922-crore IPO, open from December 3-5 with a price band of Rs 118-Rs 124 per share. A strong Grey Market Premium indicates high investor interest.
The much-anticipated Aequs IPO opened for subscription on Wednesday (December 3) drawing strong interest from investors eager to tap into India’s fast-growing aerospace manufacturing space. The Rs 922-crore public issue will remain open until December 5. Aequs, known for being India’s only precision component manufacturer operating entirely from a single Special Economic Zone, has built a niche as a vertically integrated supplier for the global aerospace industry. Beyond aviation, the company also caters to the consumer electronics, plastics, and durable goods sectors.
Grey Market Premium Signals Strong Demand
Ahead of the opening, Aequs has been buzzing in the unlisted market. The stock is commanding a GMP of Rs 46.5, according to market observers.
This translates to a potential listing price of around Rs 170.5, almost 37.5% above the upper end of the IPO price band (Rs 124 per share). GMP trends have ranged widely, from a low of Rs 18 to a high of Rs 46.50, indicating healthy speculative interest.
What Analysts Are Saying
The IPO has drawn mixed but mostly positive sentiment from brokerage houses:
Anand Rathi: “Subscribe – Long Term”
The brokerage believes Aequs is strategically positioned to capture a larger share of global aerospace manufacturing.
At the upper price band, the company is valued at 8.9x FY25 P/S with a post-issue market cap of Rs 8,316 crore.
EV/EBITDA stands at 122.9x, making valuations steep, but the firm sees strong long-term potential.
Aequs is also expanding its consumer electronics business using its advanced aerospace capabilities.
Swastika: “Subscribe (For Aggressive Investors)”
Swastika highlights Aequs’ high entry barriers in the aerospace supply chain and notes that the stock is priced lower than peers on a Price-to-Book basis (9.9x vs. peers at 15–20x).
However, it flags key concerns:
- The company is currently loss-making.
- Most IPO proceeds will go toward debt repayment, not expansion.
- Recommended only for investors willing to take a long-term, high-risk bet.
IPO Structure & Key Details
- Total Issue Size: Rs 922 crore
- Fresh issue: Rs 670 crore
- Offer for sale: Rs 251.81 crore
- Price Band: Rs 118–124 per share
- Minimum Investment: One lot = 120 shares = Rs 14,880 (at upper band)
Use of Funds:
- Rs 433 crore for debt repayment
- Rs 64 crore for new machinery
- Remainder for acquisitions and general corporate purposes
Reservation Pattern:
- QIBs: 75%
- Retail Investors: 10%
- NIIs: 15%
Important Dates:
- Final Allotment: December 8
- Listing: December 10 (BSE & NSE)
JM Financial is managing the issue, while Kfin Technologies is the registrar.