Another hectic week on the IPO calendar. Three mainboard IPOs are opening this week and aim to raise about Rs 6,000 crore. Three very different companies – Meesho, Aequs and Vidya Wires – are launching their IPOs on the same day (December 3). While one is a well-known ecommerce platform, the second one is a global aerospace supplier, and the third makes essential electrical components used in power and mobility.
With all three issues drawing attention in the grey market the key question now is – Which IPO offers an opportunity to subscribe and why.
Let’s take a look at the 5 factors every investor should look into before making a decision.
Meesho IPO Vs Aequs IPO Vs Vidya Wires IPO: Grey market trend
Among the three, Meesho shares are being quoted around Rs 153 in the unlisted market, which is nearly 38% above its upper price band of Rs 111.
Aequs GMP is hovering around Rs 167, indicating roughly a 35% premium over the top band.
Vidya Wires shares are trading at a premium of Rs 10. This indicates an estimated listed price of Rs 62, which is 19% above the issue’s upper price band of Rs 52.
However, it is important to note that GMP is not the official listing price and may fluctuate based on the market sentiment.
Meesho IPO Vs Aequs IPO Vs Vidya Wires IPO: Size, structure and the money being raised
Each IPO comes with a different objective and scale.
Meesho plans to raise Rs 5,421 crore at the upper end, backed mainly by a large fresh issue of Rs 4,250 crore. The offer for sale (OFS) has been trimmed significantly, with early investors selling fewer shares than initially planned.
Aequs is targeting Rs 921.81 crore, with a fresh issue worth Rs 670 crore and the rest as OFS from several financial investors.
Vidya Wires is the smallest of the three, seeking Rs 300 crore, where most of the money, that is, Rs 274 crore flows directly into the company through the fresh issue.
Meesho IPO Vs Aequs IPO Vs Vidya Wires IPO: What each company wants to use the funds for
The utilisation of IPO proceeds varies widely. Meesho intends to strengthen its balance sheet by using the fresh capital for expansion, marketing efficiency and general corporate needs.
Now coming to Aequs, the company is planning to channel its funds into loan repayment, new machinery, and investments in its subsidiaries in aerospace and consumer products.
On the other hand, Vidya Wires, will use a major portion of its fresh issue to set up its new ALCO unit for aluminium-based products and repay debt.
Meesho IPO Vs Aequs IPO Vs Vidya Wires IPO: Who is selling stake in the IPO?
Meesho’s OFS includes exits from Elevation Capital, Peak XV Partners, Y Combinator Continuity, and others. Even the founders are selling a small portion, though they continue to hold significant stakes after the issue.
Aequs’ OFS is taking place through entities such as Melligeri Private Family Foundation, Amicus Capital and individual investors associated with the company.
Vidya Wires OFS is relatively small at Rs 26 crore. This indicates a limited selling by existing shareholders.
Meesho IPO Vs Aequs IPO Vs Vidya Wires IPO: Key business fundamentals and listing timelines
The business models of the three companies differ sharply. Meesho operates a large-scale online marketplace that depends on seller growth, customer acquisition and logistics efficiency. Aequs is a manufacturing-driven company that supplies high-precision components to major global names in aerospace and consumer goods. Vidya Wires works in a vital industrial space, supplying copper, aluminium, enamelled and insulated conductors used in motors, transformers, solar equipment and railway systems.
As for the timeline, all three IPOs open on December 3 and close on December 5. Meesho will list on December 10, Aequs on December 12, while Vidya Wires is scheduled to debut on December 10.