New Delhi | December 4, 2025
The ₹921.81 crore initial public offering (IPO) of precision manufacturing company Aequs Limited is seeing powerful demand on its second day of bidding, with the issue subscribed about 11.10 times by the close of trade on Thursday, December 4, according to exchange-based data compiled by multiple platforms. [1]
Strong interest from retail investors and high net-worth individuals (HNIs) is driving the rally, while qualified institutional buyers (QIBs) are expected to play catch‑up on the final day of the issue.
Meanwhile, the grey market premium (GMP) for Aequs is hovering around ₹45–46 per share, implying potential listing gains of roughly 36–37% over the upper end of the price band. [2]
Day 2 Subscription Snapshot: Retail and HNIs Lead the Charge
By around 5:00 pm IST on Day 2 (December 4), the Aequs IPO saw the following subscription levels as per exchange data reproduced by several broker and financial platforms: [3]
- Overall subscription:
- ~11.10x based on official NSE/BSE figures at 17:00 hours
- Some broker platforms, using slightly later cut‑off times, peg it marginally higher at ~11.3–11.4x
- Category-wise (approximate ranges across exchange and broker data):
- Qualified Institutional Buyers (QIBs): 0.73–0.75x
- Non-Institutional Investors (NIIs / HNIs): 16.8–17.5x
- Retail Individual Investors (RIIs): 32.9–34.3x
- Employees: about 15–16x
Hindi business outlets such as Prabhat Khabar and ThePrint Hindi—which rely on NSE data—also report the issue at 11.10 times subscribed with about 4.20 crore shares on offer against nearly 46.66 crore bids, confirming the robust demand. [4]
Earlier in the day, coverage from Live Hindustan, The Hans India, and Business Today suggested that subscription climbed through the session—from around 5–10x earlier in the afternoon to over 11x by closing time, as last‑hour bids streamed in from HNIs and retail applicants. [5]
Day 1 vs Day 2: Momentum Builds Ahead of Final Bidding Day
The Day 2 numbers mark a sharp jump from Day 1, when the Aequs IPO closed with an overall subscription of 3.56x: [6]
- Day 1 (Dec 3, 17:00 hrs):
- Total: 3.56x
- QIBs: 0.68x
- NIIs: 3.55x
- Retail: 12.16x
- Employees: 7.38x
- Day 2 (Dec 4, 17:00 hrs – official):
- Total: 11.10x
- QIBs: 0.73x
- NIIs: 16.81x
- Retail: 32.92x
- Employees: 15.18x
In percentage terms, the retail book has nearly tripled in oversubscription from Day 1 to Day 2, while NII interest has surged almost fivefold, signalling aggressive participation from both small and large individual investors. QIBs remain under‑subscribed on a non‑anchor basis but typically tend to ramp up participation closer to the final bidding day.
Grey Market Premium Today: What GMP Suggests for Aequs Listing
Multiple IPO‑tracking platforms and regional business media report that the Aequs IPO grey market premium on December 4 is in the region of ₹45–46 per share: [7]
- Upper price band: ₹124
- Indicative GMP: ₹45–46
- Implied listing range: roughly ₹168–170 per share
- Implied potential listing gain: about 36–37% over the upper band
For example:
- A Hindi explainer on Live Hindustan pegs the implied listing price near ₹169.5, translating to gains of roughly 36–37%. [8]
- IPO‑focused portal IPOWatch reports a GMP of around ₹46, implying trading at about ₹170 in the unofficial market. [9]
- The Hans India also cites a GMP of ₹45.5 with similar implied returns. [10]
Important caveat: GMP is unofficial, opaque and highly volatile. It is not regulated and can change sharply based on sentiment. It should not be treated as a guaranteed indicator of listing price.
Aequs IPO: Key Issue Details
According to the red herring prospectus and broker disclosures, the Aequs IPO has the following structure and timelines: [11]
Issue size, price band and lot size
- Issue size: ₹921.81 crore
- Fresh issue: ₹670 crore
- Offer for sale (OFS): ₹251.81 crore (about 2.03 crore shares offloaded by existing shareholders)
- Price band:₹118–₹124 per share
- Face value: ₹10 per share
- Lot size:120 shares (minimum application of about ₹14,880 at the upper band)
Value Research and broker platforms such as Zerodha and Groww list the total number of shares at about 7.43 crore, with a combination of fresh issuance and OFS. [12]
Important dates
- Bidding period: December 3–5, 2025
- Basis of allotment: December 8, 2025
- Refunds / share credit: December 9, 2025
- Tentative listing date (BSE & NSE):December 10, 2025 [13]
Anchor investors have already committed roughly ₹414 crore, subscribing the anchor portion (about 3.34 crore shares) ahead of the public offer. [14]
Allocation ratio
As per standard mainboard norms highlighted in exchange and media reports: [15]
- QIBs: 75% of the net offer
- NIIs (HNIs): 15%
- Retail investors: 10%
- Employees: a small reserved portion with a discount to the issue price
Where the IPO Money Will Be Used
A significant portion of the IPO proceeds will go towards deleveraging the balance sheet, rather than pure capacity expansion: [16]
Approximate break‑up of fresh issue proceeds:
- ₹433.17 crore (≈64.6%) – Repayment or prepayment of borrowings for Aequs and certain subsidiaries
- ₹64 crore (≈9.6%) – Capital expenditure for purchase of machinery and equipment
- ₹75 crore (≈11.2%) – Inorganic growth, acquisitions and strategic initiatives
- ~₹97.83 crore (≈14.6%) – General corporate purposes
This heavy focus on debt reduction is one of the key points flagged by analysts—positive for balance‑sheet health, but it also means limited immediate capacity‑led growth from the IPO itself.
What Does Aequs Do?
Aequs Limited is a precision manufacturing and contract manufacturing company with a strong focus on aerospace components and a growing presence in consumer products and electronics. [17]
Aerospace business
- Aequs supplies aircraft parts to global original equipment manufacturers (OEMs) including Airbus and Boeing, as well as major Tier‑1 suppliers like Spirit AeroSystems and Safran. [18]
- It operates a large aerospace manufacturing ecosystem in a Special Economic Zone (SEZ) at Belagavi, Karnataka, providing end‑to‑end capabilities such as:
- Forging
- Precision machining (including 5‑axis machining)
- Sheet metal work
- Special processes and surface treatment
- Assembly and testing
- Reuters notes that aerospace contributes about 90% of Aequs’ revenue, underlining the company’s deep dependence on this segment. [19]
Consumer and electronics business
To balance cyclical aerospace demand, Aequs has built a smaller but expanding consumer division: [20]
- Toys and consumer plastics
- Cookware and kitchen appliances components
- Mechanical and plastic parts for consumer electronics and portable devices
The company operates manufacturing “ecosystems” or clusters across:
- Belagavi (Karnataka): Aerospace SEZ
- Koppal: India’s dedicated toy manufacturing cluster
- Hubballi: Consumer electronics and appliances cluster
Analysts and management commentary suggest that the consumer and electronics segments currently contribute around 10% of revenue, but are seen as potential long‑term growth drivers, especially as global brands diversify sourcing beyond China. [21]
Financial Performance: Growth With Persistent Losses
Despite the strong operational footprint, Aequs remains a loss‑making company, which is central to how investors and brokerages are assessing the IPO.
Revenue and profit trends
According to Value Research and media analyses of the company’s financials: [22]
- Revenue from operations (consolidated):
- FY23: ₹812.1 crore
- FY24: ₹965.1 crore (up ~18.8% YoY)
- FY25: ₹924.6 crore (down ~4.2% YoY)
- Net profit / (loss):
- FY23: –₹108.7 crore
- FY24: –₹12.1 crore
- FY25: –₹102.4 crore
- Debt and net worth (FY25):
- Debt: ~₹432.9 crore
- Net worth: ~₹716 crore
- Return on Equity (RoE): –14.3%
The Financial Express highlights that although EBITDA has improved (from around ₹63 crore in FY23 to about ₹108 crore in FY25), profitability remains constrained due to high depreciation and finance costs, reflecting the capital‑intensive nature of aerospace manufacturing and elevated leverage. [23]
For the six months to September 30, 2025, Reuters reports that revenue rose 17% to about ₹537 crore, while net losses narrowed roughly 76% to about ₹17 crore, indicating some operational improvement but not full earnings turnaround yet. [24]
Valuation: Rich Multiples for a Loss‑Making Play
Valuation is one of the most debated aspects of the Aequs IPO.
Brokerage commentary (notably from Angel One, as carried by The Financial Express) notes: [25]
- At the upper price band of ₹124, price‑to‑book (P/B) is around 9.9x.
- Because earnings are negative, P/E is not meaningful at present.
- On FY25 numbers, the EV-to-Sales multiple is estimated at roughly 9.8x.
Analysts argue that these rich multiples reflect:
- The high‑entry‑barrier aerospace ecosystem Aequs has built,
- Its large asset base, and
- The long‑cycle growth potential in global aerospace outsourcing and India’s manufacturing push. [26]
However, the same valuations are seen as demanding for a company that is still loss‑making and highly leveraged, which is why some brokerages are taking a more guarded stance.
What Analysts and Brokerages Are Saying
The market narrative around Aequs is currently split between “high‑potential, niche player” and “leveraged, richly‑valued bet”.
‘Subscribe with Caution’ camp
Angel One, in a note widely cited by business media, points out that: [27]
- Aequs operates in a strategic, high‑entry‑barrier segment with strong aerospace capabilities.
- But elevated leverage, continuing losses and the fact that a majority of IPO proceeds are earmarked for debt repayment rather than fresh expansion weigh on near‑term investment attractiveness.
The brokerage therefore tags the issue as “Subscribe with Caution” for long‑term investors, emphasising that potential investors should have a multi‑year horizon.
Positive ‘Subscribe’ calls
On the other hand, some research and advisory outfits, cited by platforms like Business Today and IPO‑tracking portals, highlight that Aequs: [28]
- Offers vertically integrated aerospace manufacturing from forging to final assembly within a single ecosystem.
- Has long‑standing relationships with global OEMs, in some cases exceeding 15 years.
- Stands to benefit from:
- The global aircraft order backlog,
- The “China‑plus‑one” sourcing shift, and
- India’s rising role in high‑precision manufacturing.
This camp leans towards an outright “Subscribe” recommendation, particularly for investors willing to tolerate risk in exchange for potential long‑term upside.
Why Retail Investors Are Rushing In
The 32–34x retail subscription on Day 2 suggests strong enthusiasm among individual investors. [29]
Key drivers likely include:
- Aerospace story + marquee customers
- Being a supplier to Airbus, Boeing and other global majors makes the narrative easy to sell to retail investors. [30]
- Grey market buzz
- A consistent mid‑30s percentage GMP range across the day has reinforced expectations of listing gains. [31]
- Sectoral tailwinds
- The global aerospace market is projected to grow steadily through 2030, and India is positioning itself as a key manufacturing hub, which benefits integrated precision component players like Aequs. [32]
- IPO sentiment and peers
- Aequs is part of a busy IPO calendar (alongside names like Meesho and Vidya Wires), and strong oversubscription trends across recent issues may be fuelling a broader IPO momentum trade. [33]
Key Risks Investors Should Watch
Even as demand looks strong, the Aequs IPO is not low‑risk. Offer documents and broker analyses flag several important risk factors: [34]
- High leverage and capital intensity
- Aerospace manufacturing requires heavy capex and sophisticated machinery.
- Aequs carries substantial debt, and a big chunk of IPO proceeds is simply reducing leverage rather than expanding capacity.
- Customer concentration
- A large share of revenue comes from a small set of major aerospace and consumer clients.
- Any cutback, delay or renegotiation by these customers can materially hurt revenue and cash flows.
- Cyclical and geopolitical risks
- Aerospace demand is exposed to global economic cycles, airline order trends and fuel prices, while export‑oriented manufacturers face currency and tariff risks, especially in the US and EU.
- Execution and quality risk
- Aerospace components follow strict certification and quality regimes.
- Any quality lapses, delivery delays or operational disruption could impact contracts and reputation.
- Loss‑making profile and expensive valuation
- The company continues to post accounting losses and negative RoE, even as it ramps up revenue.
- Current valuation multiples embed optimistic assumptions about future margin expansion and scale.
Should You Apply for the Aequs IPO?
From a news and analysis standpoint, Aequs checks many boxes for a “hot” IPO:
- Strong Day 2 subscription (11x+ overall, retail 30x+).
- Solid grey market premium in the mid‑30% range.
- Strategic position in aerospace manufacturing with marquee global clients.
- Tailwinds from “China‑plus‑one” and India’s manufacturing push. [35]
However, it also carries meaningful risks:
- Persistent losses and high leverage.
- A significant share of proceeds going simply to repair the balance sheet.
- Valuations that are rich relative to current profitability. [36]
For short‑term listing gains, sentiment and GMP currently look favourable—but these can reverse quickly with market volatility or negative news. Over the long term, the investment thesis hinges on Aequs successfully:
- Scaling its consumer and electronics divisions,
- Deepening high‑value aerospace work, and
- Converting operational improvements into sustainable profits.
References
1. groww.in, 2. www.livehindustan.com, 3. groww.in, 4. www.prabhatkhabar.com, 5. www.livehindustan.com, 6. groww.in, 7. www.livehindustan.com, 8. www.livehindustan.com, 9. ipowatch.in, 10. www.thehansindia.com, 11. zerodha.com, 12. www.valueresearchonline.com, 13. zerodha.com, 14. hindi.theprint.in, 15. www.financialexpress.com, 16. zerodha.com, 17. www.valueresearchonline.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.valueresearchonline.com, 21. www.reuters.com, 22. www.valueresearchonline.com, 23. www.financialexpress.com, 24. www.reuters.com, 25. www.financialexpress.com, 26. www.financialexpress.com, 27. www.financialexpress.com, 28. www.businesstoday.in, 29. groww.in, 30. www.reuters.com, 31. www.livehindustan.com, 32. www.financialexpress.com, 33. www.businesstoday.in, 34. www.financialexpress.com, 35. groww.in, 36. www.financialexpress.com
