Aequs IPO: Subscription opens today; Check GMP, lot size and other details

The ₹921.81 crore IPO of Belagavi-based precision engineering and manufacturing firm Aequs Ltd. opens for subscription on Wednesday, December 3, and will remain open until December 5. The offer includes both a fresh issue and an offer for sale.

Ahead of the launch, the company raised about ₹413.9 crore from anchor investors, with participation from 33 marquee domestic and global institutions.

The anchor list includes major mutual funds and investment houses such as SBI MF, HDFC MF, ICICI MF, Axis MF, Motilal Oswal MF, BlackRock Global Funds, Bank of India MF, Steadview Capital, Citigroup and Societe Generale.

Should investors apply?

SBI Securities - Subscribe

The brokerage has recommended subscribing at the cut-off price. It said that Aequs has firmly positioned itself within the global commercial aircraft components ecosystem, a space with high entry barriers. With both Boeing and Airbus sitting on strong order books, the brokerage expects steady demand for components.

The aerospace vertical is already operationally profitable, driven by improving EBITDA margins. SBI Securities added that debt reduction through IPO proceeds will majorly lower interest costs and push the company toward PAT-level profitability. At the upper price band of ₹124, the stock is valued at 8.7x EV/Sales on a post-issue basis.

Anand Rathi - Subscribe For Long-Term

Anand Rathi said the company is working to deepen wallet share with existing aerospace clients by moving up the value chain while also expanding its customer base. It also aims to scale its consumer electronics business by leveraging aerospace-grade capabilities.

The brokerage sees meaningful long-term potential, though smooth execution will be crucial. It has rated the IPO 'Subscribe - Long Term,' adding that valuations appear full.

Angel One - Subscribe With Caution

At the upper band, Aequs is valued at 9.94x P/B since negative earnings make P/E irrelevant. The brokerage said the valuation reflects the company's integrated ecosystem, strong asset base, long-cycle growth opportunity and high entry-barrier business model.

However, high leverage, continued losses and the use of most IPO proceeds for debt repayment temper near-term appeal. It has tagged the issue as 'Subscribe with Caution' for long-term investors.

IPO details

Aequs has fixed a price band of ₹118-124 per share. The grey market premium is around 38%. The minimum bid size is 120 shares and in multiples thereafter.

The IPO includes a fresh issue of 5.40 crore shares worth ₹670 crore and an OFS of 2.03 crore shares amounting to ₹251.81 crore.

Promoter entities Melligeri Private Family Foundation and Aequs Manufacturing Investments Pvt Ltd are part of the selling shareholders.

Selling shareholders in the IPO include Amicus Capital, Vasundhara Dempo Family Private Trust, Girija Dempo Family Private Trust, and individual shareholders Ravindra Mariwala and Raman Subramanian.

The company's promoter, Aravind Shivaputrappa Melligeri, serves as executive chairman and CEO.

Aequs is backed by investors such as Amicus Capital, Amansa Investments, Steadview Capital Mauritius, Catamaran Ekam and Sparta Group, which together hold 25.54% of its pre-IPO outstanding equity

Net proceeds will be used for debt repayment at two subsidiaries, AeroStructures Manufacturing India and Aequs Consumer Products, along with machinery purchases, acquisitions, strategic initiatives and general corporate purposes.

Aequs positions itself as India's only precision component manufacturer operating within a single SEZ with fully integrated aerospace manufacturing capabilities. It supplies components for engine systems, landing systems, cargo and interiors, structures, assemblies and turning.

Financially, losses for the six months ended September 2025 narrowed to ₹17 crore from ₹71.7 crore a year earlier, while revenue rose 17% to ₹537.2 crore.

However, for FY25, losses widened to ₹102.3 crore versus ₹10.8 crore the previous year, with revenue slipping to ₹924.6 crore from ₹965 crore.

JM Financial, IIFL Capital and Kotak Mahindra Capital are the book-running lead managers.

The shares will list on the BSE and NSE, with a tentative listing date of December 10.