The countdown has begun for public issues of Aequs which will open its initial public offering (IPO) on December 3. Ahead of the opening, the grey market premium (GMP) has already sparked strong curiosity among investors.
With its price band fixed at Rs 118-124 per share, let’s take a look at the key elements every investor should understand before the IPO goes for subscription.
Aequs IPO: Why the GMP is gaining attention
In the unlisted market, Aequs shares are currently trading around Rs 149. This indicates a grey market premium of 20% over the upper end of the price band.
However, it is to be noted that the GMP is not an official indicator of the listing price. It fluctuates based on market conditions and at best shows investor sentiment.
Aequs IPO: Price band and overall issue size
Aequs has fixed its price range between Rs 118-124 per share. At the upper end, the total fundraising through the IPO comes to around Rs 921.81 crore.
The issue is a combination of both – fresh issue and an offer for sale (OFS). Breaking it down, it includes a fresh issue worth Rs 670 crore and OFS amounting to nearly Rs 252 crore, where existing shareholders plan to offload part of their holdings.
Aequs IPO: Who is selling under the Offer for Sale
May of the early investors will be exiting a portion of their stake through the OFS. These include entities such as the Melligeri Private Family Foundation, Amicus Capital Private Equity I LLP, Amicus Capital Partners India Fund, and Raman Subramanian. Their sale forms a key part of the OFS component of the issue.
Aequs IPO: How much investors need to apply
For retail applicants, the minimum bid has been set at one lot containing 120 shares. The allocation structure follows the standard pattern seen in large IPOs. Qualified Institutional Buyers (QIBs) will have access to at least 75% of the issue, Non-Institutional Investors (NIIs) can get up to 15%, and retail investors will have up to 10% of the offer size. The company has also set aside a small portion worth Rs 2 crore for eligible employees, who will receive a discount on the issue price.
Aequs IPO: Where the IPO money will be used
The company plans to utilise the amount raised from the fresh issue to repay loans, purchase new machinery and equipment, invest in its subsidiaries like AeroStructures Manufacturing India and Aequs Consumer Products, and pursue future expansion opportunities including acquisitions and general business needs.
Aequs IPO: Key dates to track for the Aequs IPO
The IPO will open on December 3 and close on December 5. The allotment of shares is expected on December 9, with refunds (if any) also likely to be processed the same day. Shares are expected to be credited to demat accounts on December 9 or 10. The company is scheduled to list on the stock exchanges on December 12. A day before the IPO opens, anchor investors will participate in the issue.
Aequs IPO: From aerospace to consumer products
Aequs is known primarily for its work in the aerospace manufacturing segment, where it produces precision components for global clients. Over time, it has expanded its presence into plastics, consumer electronics, and consumer durables. In aerospace, the company supplies to well-known names such as Airbus, Boeing, Honeywell, Safran, Collins Aerospace, and several others. In the consumer business, it caters to brands like Hasbro, Wonderchef, Spinmaster, and Tramontina.
Aequs has manufacturing units in India, France, and the United States, with major clusters located in Belagavi, Hubballi, and Koppal in Karnataka.
