The initial public offering (IPO) of Aequs Ltd, a diversified contract manufacturer, continues to attract strong investor interest. By the close of the second day of bidding on Thursday, December 4, the issue was subscribed 11.10 times the shares on offer. The robust demand, particularly from retail investors, sets a positive tone ahead of the issue's closure on Friday, December 5.
Strong Demand and Grey Market Sentiment
The subscription data reveals a keen interest across investor categories. The portion reserved for retail investors was overwhelmingly subscribed 32.92 times. Non-institutional investors (NIIs) bid for 16.82 times their allotted quota, while the employee portion saw 15.18 times subscription. Qualified Institutional Buyers (QIBs) had filled 73% of their reserved portion by the end of Day 2. In total, bids were received for over 46.66 crore shares against the 4.33 crore shares available.
Reflecting the bullish sentiment in unofficial circles, the Aequs IPO grey market premium (GMP) today stands at ₹41. This indicates that the share price is trading at a premium in the unofficial market before its official listing. Based on the upper end of the IPO price band at ₹124 per share, this GMP suggests an estimated listing price of around ₹165 per share. If realized, this would represent a listing gain of approximately 33.06% for successful allottees.
IPO Details and Brokerage Perspectives
The Aequs IPO is a mix of a fresh issue of shares worth ₹670 crore and an offer for sale (OFS) of 2.03 crore shares by promoters and existing shareholders, aggregating to a total issue size of ₹922 crore. The price band has been set at ₹118 to ₹124 per share. Proceeds from the fresh issue will be used for debt repayment at the company and subsidiary level, acquiring machinery, and funding general corporate purposes and growth initiatives.
Brokerages have shared their analyses on the public offer. Anand Rathi noted that the company, priced at the upper band, is valued at 8.9 times its FY25 price-to-sales ratio. The brokerage highlighted Aequs's strategy to move up the value chain in aerospace and expand its consumer electronics vertical. While acknowledging the upside potential from the consumer business, it rated the IPO as "Subscribe – Long Term," calling it fully valued.
SBICAP Securities pointed out that the aerospace segment is operationally profitable with improving margins. The brokerage emphasized that the debt repayment from IPO proceeds will lead to significant interest cost savings, helping the company achieve profitability at the net level. It has advised investors to subscribe to the issue at the cut-off price.
Key Dates and Company Profile
Investors who applied for the IPO should note the upcoming key dates. The basis of allotment is expected to be finalized on Monday, December 8. Refunds will be initiated on Tuesday, December 9, and shares will be credited to demat accounts of successful allottees on the same day. The Aequs share price is likely to be listed on BSE and NSE on Wednesday, December 10.
Aequs Ltd began as a precision aerospace components manufacturer but has strategically diversified over time. While aerospace remains a core segment, the company now also manufactures a range of consumer durable goods and plastic products. Its consumer portfolio includes cookware and small home appliances. The plastics division produces outdoor toys, figurines, and components for electronics like laptops and smart devices.
The lead managers for the issue are JM Financial Limited, IIFL Capital Services Limited, and Kotak Mahindra Capital Company Limited. KFin Technologies Limited is the registrar to the offer.
