The initial public offering (IPO) of Aequs Ltd, a diversified contract manufacturer, has witnessed a robust response from investors. The public issue, which opened for subscription on Wednesday, was oversubscribed within hours and concluded its second day with a subscription rate of 3.42 times the shares on offer.
Strong Investor Demand and Grey Market Premium
The enthusiastic bidding reflects strong confidence in the company's prospects. Adding to the positive sentiment is the current premium in the unofficial grey market. The Aequs IPO GMP (Grey Market Premium) today stands at ₹45.5. This indicates a healthy demand for the shares before their official market debut.
When considering the upper end of the IPO price band at ₹124 per share and adding the current GMP, the estimated listing price is projected to be around ₹169.5 per share. This potential listing price is approximately 36.69% higher than the IPO's upper price band, promising significant gains for allotted investors if the trend holds.
IPO Details and Company Valuation
The Aequs IPO is a mix of fresh capital and an offer for sale by existing stakeholders. The total issue size aggregates to ₹922 crore. This comprises a fresh issue of shares worth ₹670 crore, which will provide growth capital to the company, and an offer for sale (OFS) of 2.03 crore shares valued at ₹252 crore by its promoters and existing investors.
The company has set a price band of ₹118 to ₹124 per share for the offer. At the upper end, this gives Aequs a valuation surpassing ₹8,300 crore. The subscription window for this public offering is scheduled to close on December 5.
Business Model and Notable Backers
While Aequs initially established itself as a precision manufacturer for the global aerospace industry, it has strategically diversified its portfolio over the years. The company now operates across multiple verticals including consumer durable goods, consumer electronics, and precision plastics, reducing its dependence on any single sector.
The company's growth trajectory is supported by a roster of prominent institutional investors. Its cap table includes names like Amicus Capital, Amansa Capital, Steadview Capital, and Catamaran – the family office of Infosys founder N R Narayana Murthy. The Sparta Group is also among its key backers, highlighting the strong institutional faith in its business model.
The successful initial subscription days set a positive tone for Aequs as it moves closer to its stock market listing, with all eyes now on the final subscription numbers and the eventual listing price performance.
