Aequs IPO Day 3: Issue booked 101.63x. GMP hints 33% listing gain. Check key dates, review. Apply or not?

Aequs IPO Day 3: Aequs Ltd, a contract manufacturing company focused on consumer durable goods and aerospace components, achieved a Aequs IPO subscription status of 11.10 times by the second day of its initial public offering on Thursday, December 4.

Aequs IPO GMP today is ₹41. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Aequs is indicated at ₹165 apiece, which is 33.06% higher than the IPO price of ₹124.

The initial share offering of Aequs Ltd was fully subscribed within hours after the bidding commenced on Wednesday, December 3 concluding the day with a subscription rate of 3.42 times.

The share sale is set to close on Friday, December 5 with the Aequs IPO price band established at ₹118-124 per share, giving Aequs a valuation exceeding ₹8,300 crore. While Aequs mainly operates in the aerospace sector, it has broadened its product range over time to include consumer electronics, plastics, and durable goods.

Its range of consumer products features cookware and small home appliances, while its plastic products consist of outdoor toys, figurines, toy vehicles, and components for consumer electronics such as laptops and smart devices.

Aequs IPO has reserved 75% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and 10% of the offer is reserved for retail investors.

Tentatively, Aequs IPO basis of allotment of shares will be finalised on Monday, December 8 and the company will initiate refunds on Tuesday, December 9, while the shares will be credited to the demat account of allottees on the same day following refund. Aequs share price is likely to be listed on BSE and NSE on Wednesday, December 10.

Aequs IPO Review

Anand Rathi indicated that at the upper price band level, the company is assessed at 8.9 times the FY25 price-to-sales ratio, suggesting a post-issue market capitalization of ₹83,161 million and an enterprise value to EBITDA ratio of 122.9 times.

According to the brokerage, the company aims to enhance its share of customer spending with current aerospace clients by advancing up the value chain, while also working to expand its customer base in the Aerospace sector. Furthermore, it intends to grow its consumer electronics offerings by utilizing its advanced aerospace capabilities to increase manufacturing scale, expand its customer base, and boost its share of customer spending.

"The consumer business adds significant upside though smooth execution is required which will help them achieve profitability in future. Considering these factors, the IPO appears fully valued and is rated “Subscribe – Long Term,” said the brokerage.

SBICAP Securities noted that the Aerospace segment is generating operational profit with a continually improving EBITDA margin. The intended debt repayment funded by the IPO proceeds will lead to significant savings on interest expenses, which should enable the company to achieve profitability at the PAT level. Priced at the upper band of ₹124, the stock is evaluated at 8.7x EV/Sales based on post-issue capital. The brokerage advises investors to subscribe to the issue at the cut-off price.

Aequs IPO Subscription Status

Aequs IPO subscription status was 101.63x on day 3. The retail portion was subscribed 78.05x, and NII portion has been booked 80.62x, Qualified Institutional Buyers (QIBs) portion received 120.92 times bids. The employee portion has received 35.85 times bids.

The company has received bids for 4,27,13,40,720 shares against 4,33,34,009 shares on offer, at 19:00 IST, according to data on BSE.

Aequs IPO details

Aequs IPO consists of new share issuance worth ₹670 crore, in addition to an offer for sale (OFS) of 2.03 crore shares estimated at ₹252 crore from promoters and existing investors, bringing the total size of the issue to ₹922 crore.

The capital generated from the new share issuance will be allocated to paying off debts incurred by the company and its two subsidiaries—AeroStructures Manufacturing India and Aequs Consumer Products—acquiring machinery and equipment for both the company and AeroStructures, and fostering future growth through potential acquisitions, various strategic initiatives, and general corporate expenses.

The lead managers for the Aequs IPO include JM Financial Limited, IIFL Capital Services Limited, and Kotak Mahindra Capital Company Limited. Meanwhile, KFin Technologies Limited is acting as the registrar for the offering.

Aequs IPO GMP today

Aequs IPO GMP today is ₹41. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Aequs is indicated at ₹165 apiece, which is 33.06% higher than the IPO price of ₹124.

Reflecting on the past nine sessions of grey market activities, the IPO GMP is showing an upward trend today and is anticipated to have a robust listing. Experts suggest that the lowest GMP recorded is ₹18.00, whereas the highest GMP stands at ₹46.50.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.