Contract manufacturing firm Aequs is set to hit the public markets on December 3. With IPOs from Vidya Wires and Meesho also scheduled for the same day, investor attention is likely to remain high. Aequs’ Rs 921 crore issue will be closely watched, but before placing bids, investors should assess the key monitorables. Here’s a breakdown of the important details related to the public offering.
Aequs IPO: Issue size and Promoter Group
Aequs’ IPO of Rs 921.81 crore is a combination of both fresh issue and offer for sale. Of the total float, Rs 670 crore will be raised through a fresh issue of 5.40 crore shares, while 2.03 crore shares worth Rs 251.81 crore will be offloaded through the OFS route.
Aequs IPO GMP
Aequs has fixed its price band between Rs 118-124 per share. As per the latest update, the company’s shares are trading at Rs 171 in the unlisted market, marking a grey market premium of nearly 38% on the upper end. However, GMP is not an official metric for the listing price. It fluctuates based on market conditions and at best shows investor sentiment.
Aequs IPO: Tentative listing dates
Aequs’ IPO will open for bidding on December 3 and close on December 5. Share allotment is expected by December 8, and the credited shares, along with initiation of refunds for unsuccessful bids, will take place on December 9. The company is likely to be listed on the stock exchanges on December 10.
Aequs IPO: Utilisation of funds
Aequs plans to deploy around Rs 433.1 crore of the proceeds towards repayment of borrowings and penalties. Approximately Rs 64 crore will be used to acquire new machinery and equipment for the company and its subsidiaries, including AeroStructure Manufacturing India and Aequs Consumer Products. The remaining funds will support expansion plans, potential acquisitions, and general corporate requirements.
Aequs IPO: Risk factors to watch out for
Investors should be mindful of key risks. Aequs relies heavily on the aerospace sector, which contributed over 89% of itsFY25 revenue, this could make it vulnerable to demand fluctuations. The company’s capital-intensive business model and high leverage may also limit its financial flexibility, Angel One said in a report. Additionally, long working capital cycles and strict certification-based quality requirements may disrupt its order completion timeline which could materially affect cash flows, margins, and operational stability, as highlighted in the company’s DRHP.
