Aequs Limited, the Belagavi-headquartered precision engineering and aerospace components manufacturer, has formally announced the price band for its upcoming Initial Public Offering (IPO) at ₹118–124 per share, aiming to raise up to ₹921.72 crore. The issue opens for subscription December 3–5, with anchor investors participating on December 2.
Valuation and Investor Considerations
The IPO price band values the offer at 11.80x–12.40x its face value of ₹10. However, Aequs enters the market as a loss-making entity, having reported negative earnings in FY25. With both basic and diluted EPS in the red, a meaningful P/E ratio cannot be computed—a crucial red flag for value-conscious investors.
Employees applying under the reserved quota will benefit from an ₹11-per-share discount, reducing their effective price to ₹107–113.
Issue Structure
The ₹921.72-crore IPO comprises:
- Fresh Issue: ₹670 crore
- Offer for Sale (OFS): ₹251.72 crore, involving the sale of ~2.03 crore shares at the upper price band.
Key selling shareholders include Amicus Capital, Melligeri Private Family Foundation, Aequs Manufacturing Investments, and Ravindra Mariwala, among others—indicating partial exits by early investors.
Pre-IPO Placement Signals Strong Institutional Appetite
Ahead of the IPO, Aequs completed a ₹144-crore pre-IPO placement at ₹123.97 per share, nearly matching the upper end of the IPO band. The round attracted marquee institutions including SBI Mutual Fund, DSP India Fund, and Think India Opportunities Master Fund, signalling confidence in Aequs’ long-term positioning despite its current losses.
Company Overview: Strengths & Risks
Aequs has built a reputation for vertically integrated precision manufacturing serving the aerospace and consumer goods markets. Its operations include specialised machining, forging, and assembly services for top-tier global OEMs.
However, despite its scale and multi-year contracts, the company reported losses for FY25. The three-year weighted average RoNW stands at –15.07%, reflecting sustained pressure on profitability, even as revenue streams remain visible and diversified.
Key Dates Investors Should Track
- Allotment Finalisation: December 8
- Refunds / Demat Credit: December 9
- Listing on NSE & BSE: December 10
Lead Managers
The IPO is managed by JM Financial, IIFL Capital, and Kotak Mahindra Capital, with KFin Technologies Limited acting as the registrar.