Aequs lists with a near 13% premium; stock opens at ₹140 on day one
Aequs commenced trading on December 10 at a price higher than its ₹124 issue rate following an overwhelmingly subscribed IPO, although below grey-market expectations
Aequs gets strong listing start
Aequs Ltd. made its public appearance on December 10 at ₹140 per share on the NSE, 12.9% above its issue price of ₹124. At this pace, the valuation of the company would be near ₹9,400 crore on listing.
The ₹922-crore IPO saw bumper subscriptions of nearly 102 times across institutional, retail and HNI categories. Heavy subscription in all categories reflected strong investor confidence in its debut.
Why the IPO attracted strong traction
What works in Aequs’ favour is its integrated aerospace-manufacturing capabilities, established customer relationships and long-term contracts, despite the firm still recording losses. At the upper end of the price band, analysts estimated the valuation at roughly 9.9 times its book value.
The proceeds from the fresh issue will be used to expand the production infrastructure, reducing borrowings, and for general corporate activities. Proceeds from the offer-for-sale route would go to the existing shareholders exiting the company.
Key risks & market outlook
Even with a decent listing, Aequs has to grapple with several issues, including high capital requirements and extended working-capital cycles, not to mention dependence on a handful of aerospace customers globally. Its business operates under stiff international regulatory and compliance frameworks.
However, the premium listing offers early optimism for investors, while sustained performance will depend upon Aequs’ ability for efficient growth of operations. Converting the strong order book into steady profitability and maintaining global standards will be critical for long-term value creation.
