The much-anticipated Aequs IPO opened for subscription on Wednesday (December 3) drawing strong interest from investors eager to tap into India's fast-growing aerospace manufacturing space. The Rs 922-crore public issue will remain open until December 5. Aequs, known for being India's only precision component manufacturer operating entirely from a single Special Economic Zone, has built a niche as a vertically integrated supplier for the global aerospace industry. Beyond aviation, the company also caters to the consumer electronics, plastics, and durable goods sectors.

Add Asianet Newsable as a Preferred Source

Grey Market Premium Signals Strong Demand

Ahead of the opening, Aequs has been buzzing in the unlisted market. The stock is commanding a GMP of Rs 46.5, according to market observers.

This translates to a potential listing price of around Rs 170.5, almost 37.5% above the upper end of the IPO price band (Rs 124 per share). GMP trends have ranged widely, from a low of Rs 18 to a high of Rs 46.50, indicating healthy speculative interest.

What Analysts Are Saying

The IPO has drawn mixed but mostly positive sentiment from brokerage houses:

Anand Rathi: "Subscribe – Long Term"

The brokerage believes Aequs is strategically positioned to capture a larger share of global aerospace manufacturing.

At the upper price band, the company is valued at 8.9x FY25 P/S with a post-issue market cap of Rs 8,316 crore.

EV/EBITDA stands at 122.9x, making valuations steep, but the firm sees strong long-term potential.

Aequs is also expanding its consumer electronics business using its advanced aerospace capabilities.

Swastika: “Subscribe (For Aggressive Investors)”

Swastika highlights Aequs' high entry barriers in the aerospace supply chain and notes that the stock is priced lower than peers on a Price-to-Book basis (9.9x vs. peers at 15–20x).

However, it flags key concerns:

• The company is currently loss-making.
• Most IPO proceeds will go toward debt repayment, not expansion.
• Recommended only for investors willing to take a long-term, high-risk bet.

IPO Structure & Key Details

• Total Issue Size: Rs 922 crore
• Fresh issue: Rs 670 crore
• Offer for sale: Rs 251.81 crore
• Price Band: Rs 118–124 per share
• Minimum Investment: One lot = 120 shares = Rs 14,880 (at upper band)

Use of Funds:

• Rs 433 crore for debt repayment
• Rs 64 crore for new machinery
• Remainder for acquisitions and general corporate purposes

Reservation Pattern:

• QIBs: 75%
• Retail Investors: 10%
• NIIs: 15%

Important Dates:

• Final Allotment: December 8
• Listing: December 10 (BSE & NSE)

JM Financial is managing the issue, while Kfin Technologies is the registrar.