The initial public offering (IPO) of Aequs Ltd is set to open on Wednesday, December 3, 2025, aiming to raise ₹921.81 crore from the primary market. The IPO will remain open for subscription until Friday, December 5, 2025. The allotment is expected to be finalized on December 8, 2025, and the shares are scheduled to be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on December 10, 2025.
Price Band and Lot Size
The price band for the Aequs IPO is fixed at ₹118 to ₹124 per share. The lot size is 120 shares, requiring a minimum investment of ₹14,880 for retail investors. Retail investors can apply for a maximum of 13 lots, which amounts to 1,560 shares and an investment of ₹193,440. For small Non-Institutional Investors (sNII), the minimum application size is 14 lots (1,680 shares) at ₹208,320, while the upper limit is 67 lots (8,040 shares) costing ₹996,960. Big HNIs (B-HNIs) must apply for at least 68 lots, translating to 8,160 shares and an investment of ₹1,011,840.
Issue Details
The ₹921.81 crore IPO consists of a fresh issue of 5.40 crore shares, worth ₹670 crore, and an offer for sale (OFS) of 2.03 crore shares, amounting to ₹251.81 crore. The company has reserved 75% of the net offer for Qualified Institutional Buyers (QIB), 10% for Retail Investors, and 15% for Non-Institutional Investors (NII).
Grey Market Premium (GMP)
The grey market premium (GMP) for Aequs IPO is ₹44.5 per share today. This suggests that the shares are trading at ₹168.5 apiece in the grey market, a 35.89% premium over the IPO's upper price band of ₹124.
Objectives of the IPO
Aequs plans to utilize the net proceeds from the fresh issue for several purposes:
- Repayment of certain outstanding borrowings and prepayment penalties
- Funding capital expenditure for purchasing machinery and equipment
- Funding inorganic growth through unidentified acquisitions
- Other strategic initiatives and general corporate purposes
Company Overview
Incorporated in 2000, Aequs Ltd. is a precision component manufacturer, primarily for the aerospace segment. It operates a Special Economic Zone (SEZ) offering fully integrated production capabilities. While aerospace remains its core business, the company has expanded into consumer electronics, plastics, and consumer durables. As of September 30, 2025, Aequs produced over 5,000 aerospace products across major commercial aircraft platforms.
Financial Performance and Risks
Aequs's revenue depends heavily on its aerospace business. The company has a concentrated customer base, with a significant portion of its revenue coming from a few clients. While the aerospace division is profitable, other business segments have been incurring losses. For the last three fiscals, the company has posted negative earnings per share (EPS) and return on net worth (RoNW).
Review and Recommendation
SBI Securities recommends subscribing to the Aequs IPO, citing the company's deep integration in the global aerospace component ecosystem, high entry barriers, and large order books from OEMs like Boeing and Airbus. Ventura Securities also endorses the subscription, noting Aequs's unique vertically integrated operations. However, investors should consider the risks, including customer concentration and dependence on a single segment, and modest profitability before making a decision. Dilip Davda suggests that well-informed and cash-surplus investors may consider parking moderate funds for the long term.
