Aequs IPO is a medium‑sized, fairly valued aerospace‑focused issue where the core business quality and sector tailwinds are strong, but recent financial performance, high capex needs, and dependence on a few large customers make it more suitable for investors with higher risk appetite and a 3–5 year horizon than for conservative or purely listing‑gain seekers.
Key IPO details
- Price band: ₹118–₹124 per share; face value ₹10.
- Issue size: About ₹921.8 crore (fresh issue ~₹670 crore + OFS ~₹251.8 crore).
- Lot size: 120 shares; minimum investment ~₹14,160–₹14,880 depending on final price.
- IPO dates: 3–5 December 2025; tentative listing on NSE & BSE on 10 December 2025.
- Use of proceeds: Debt reduction, capex for aerospace and consumer‑electronics subsidiaries, machinery purchases, and general corporate purposes.
Grey Market Premium (GMP) and implied listing gains
- Recent GMP is reported in the ₹44–₹47 range per share.
- At the upper band of ₹124, this implies an indicative listing price near ₹165–₹172, i.e., about 35–40% notional upside over issue price if sentiments hold.
- GMP is an unofficial, unregulated indicator driven by trader sentiment and can change sharply until listing, so it should not be the primary reason to invest.
Business overview and financial snapshot
Aequs is a diversified contract manufacturer best known for its fully integrated aerospace manufacturing ecosystem at the Belagavi SEZ in Karnataka, combining machining, forging, surface treatment and assembly for global aircraft programs. The company also makes precision plastics and components for consumer electronics, toys and durable goods, serving over 180 customers globally with facilities in India, France, and the US.
- Aerospace is the dominant segment, contributing a large share of revenue and higher margins, with clients such as Airbus, Boeing, Safran, Collins and Spirit AeroSystems.
- FY25 revenue is around ₹925 crore, with earlier years showing double‑digit growth but also a recent slowdown and losses driven by consumer business softness and transition costs.
- On valuation, the IPO is in the ~8.7–9.8x EV/Sales range at the upper band, which is not cheap, but reflects its niche capabilities and global customer base.
Aequs IPO: Key metrics
| Parameter | Details |
|---|---|
| Issue Size | ₹921.81 crore |
| Fresh Issue | ₹670 crore (new shares) |
| Offer for Sale (OFS) | ₹251.81 crore (existing shareholders) |
| Price Band | ₹118 – ₹124 per share |
| Face Value | ₹10 per share |
| Lot Size | 120 shares |
| Minimum Retail Investment | ₹14,880 (at ₹124) |
| Listing | BSE & NSE |
| IPO Opens | 3 December 2025 |
| IPO Closes | 5 December 2025 |
| Allotment Date | 8 December 2025 |
| Listing Date | 10 December 2025 |
Positives / Strengths
- Unique integrated aerospace cluster: Aequs operates one of India’s only fully integrated aerospace manufacturing ecosystems in a single SEZ, which improves cost control, quality, and delivery and creates high entry barriers for new competitors.
- Sticky global OEM relationships: Long‑standing relationships (often 10–15+ years) with marquee aerospace and consumer brands provide revenue visibility and make it hard for rivals to displace Aequs once qualified.
- Sector tailwinds and “China+1”: Global OEMs are diversifying supply chains towards India; precision aerospace and electronics manufacturing are priority sectors, and Aequs is well‑positioned to benefit from this shift.
- Cluster‑based scale and diversification: Multiple clusters in Karnataka plus overseas plants and co‑located suppliers enable scalable, cost‑efficient manufacturing while spreading revenue across aerospace, toys and consumer segments.
Key risk factors
- Capital‑intensive and leveraged model: Aerospace manufacturing demands heavy, ongoing investment in advanced machinery and capacity; Aequs has meaningful debt and is using a large part of the IPO money just to repay or prepay borrowings.
- Volatile and recently weak financials: While revenues have grown over time, recent years saw slower growth, margin pressure and losses, especially due to a slowdown in the consumer division and strategic restructuring.
- Client and sector concentration: A large share of revenue depends on a few global aerospace customers and programs, so any cut in orders, program delays or renegotiation can materially hit the business.
- Execution risk in diversification: Management plans to significantly ramp up consumer electronics and smart‑device components; scaling this new vertical while maintaining aerospace quality may strain resources and carries execution risk.
Should you invest or avoid?
For aggressive, long‑term investors comfortable with cyclicality, capital intensity and near‑term earnings volatility, Aequs offers a rare listed play on India’s integrated aerospace manufacturing ecosystem with strong global OEM relationships and potential upside if margins improve and consumer‑electronics plans execute well. The valuations bake in premium for this positioning but are in line with high‑quality niche manufacturing stories, and the reported GMP suggests decent listing interest, though that can change quickly.
Conservative or income‑oriented investors, those seeking only quick listing gains, or investors uncomfortable with leverage and currently subdued profitability may prefer to watch a couple of quarters post‑listing before committing capital. As with any IPO, position sizing should be modest, and the decision should align with personal risk profile, time horizon and overall asset allocation rather than GMP alone.
