Aequs Limited IPO opened for subscription on December 3 and received an extremely strong response from investors. The issue, worth ₹921.8 crore, was fully subscribed within just a few hours of opening. Most of the demand came from retail investors, who oversubscribed their portion by several times.
Aequs is an aerospace-parts manufacturer that supplies precision components to major global companies, including Airbus and Boeing. The company is known for operating a large, fully integrated aerospace manufacturing facility in Karnataka.
The price band for Aequs IPO is ₹118 to ₹124 per share. At this price, the company’s market value works out to about ₹8,316 crore. The issue includes a fresh issue of ₹670 crore and an offer-for-sale of ₹251.8 crore.
Market watchers say that the IPO has been attracting a strong grey-market premium (GMP), with some reports indicating a possible listing gain if market sentiment remains positive. Analysts say interest is high because India is becoming an important location for aerospace manufacturing, and Aequs is one of the few companies offering end-to-end production capabilities in this sector.
However, they also point out that the company has seen a dip in overall revenue recently, mainly due to weakness in its consumer products division. Even so, many believe the long-term outlook for Aequs’s core aerospace business remains strong.
The funds raised from the fresh issue will be used to repay debt, expand capacity, and support future growth plans.
The IPO will remain open for subscription until December 5.
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