Aequs share price extends gains, closes first day over 20% higher. Should you buy, sell or hold?

Shares of Aequs Ltd, a contract manufacturing firm specialising in consumer durable goods and aerospace parts, finished their first trading day on Dalal Street with solid gains.

The shares listed at a premium of 13% over the issue price of ₹124 and went on to maintain the same momentum towards the close, settling at ₹151.30 apiece, which is 22% higher than the IPO price.

The company’s market valuation stood at ₹10,146 crore on the BSE. Following the solid debut, analysts suggested that investors who received allotments could hold the stock for the long term.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., said the listing was well below their expectations, giving more reason to accumulate and hold the stock for the long term. He believes the stock would perform well post-listing, supported by strong subscription traction and investor interest in one of India’s most advanced, fully integrated aerospace precision-manufacturing platforms.

Given its strong competitive positioning, global customer relationships, and alignment with India’s expanding aerospace manufacturing opportunities, Prashanth recommended that allotted investors hold the stock for the long term.

Shivani Nyati, Head of Wealth at Swastika Investmart, said that despite the moderate listing compared to upper-end expectations, the sentiment around Aequs remains constructive. She noted that the company’s ability to scale operations, deepen global customer relationships, and benefit from India’s rising prominence in aerospace manufacturing makes it a notable long-term candidate.

However, she cautioned that investors must remain mindful of key risks, including sector cyclicality, dependence on global aerospace demand, and capital-intensive execution.

Shivani Nyati further advised that investors who received an allotment should follow a balanced approach. She recommended booking partial profits after the 13% listing gain to secure immediate returns, while holding the remaining quantity for the medium to long term, considering the company’s strong fundamentals, industry tailwinds, and its integrated capabilities that differentiate it within India’s aerospace ecosystem.

Aequs IPO Details

The public issue opened for subscription on Wednesday, December 3, and closed on Friday, December 5, raising ₹921.81 crore, which comprises a fresh issue of 5.40 crore equity shares worth ₹670 crore and an offer-for-sale (OFS) of 2.03 crore shares amounting to ₹251.81 crore, with the IPO price band fixed at ₹118 to ₹124 per share.

The issue was subscribed a robust 101.63 times in total, with the retail investors’ portion booked 78.05 times, while the Non-Institutional Investors (NII) segment was also fully booked. The Qualified Institutional Buyers (QIB) category showed similar enthusiasm, as their portion was subscribed 120.92 times.

About Aequs

Aequs was founded in 2009 and has grown from making aero-structure and engine parts to creating a globally recognized engineering-focused ecosystem that serves both the aerospace and consumer markets.

The company makes over 5,000 components for major aircraft programs like the A320, A350, B737, and B787. It has grown internationally through acquisitions in North America and France. Beyond aerospace, it also supplies products to clients in consumer electronics, plastics, and consumer durables.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.