Aequs IPO: Key Details, Dates, and Investment Insights
Aequs Ltd is gearing up for its initial public offering (IPO) on December 3, aiming to raise around ₹922 crore from the primary market. This company stands out as India’s only precision component manufacturer operating within a Special Economic Zone, focusing on fully integrated manufacturing capabilities in the aerospace sector.
In addition to aerospace, Aequs is involved in producing consumer electronics, plastics, and consumer durables. The IPO will be open for subscription until December 5, with a price band set between ₹118 and ₹124 per share. Retail investors will need a minimum investment of ₹14,880 for a lot size of 120 shares.
The total size of the Aequs IPO is approximately ₹921.81 crore, consisting of 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. The company has allocated 75% of the net offer for Qualified Institutional Buyers (QIB), 10% for Retail Investors, and 15% for Non-Institutional Investors (NII).
Key dates for the IPO include the allotment date on December 8, followed by the listing on December 10 on both BSE and NSE. The funds raised from the IPO will be used for repaying outstanding borrowings, purchasing machinery, and funding strategic growth initiatives.
Aequs is experiencing a strong grey market premium (GMP), currently at ₹44.5 per share. This indicates that Aequs shares are trading at ₹168.5 in the grey market, reflecting a premium of 35.89% over the upper issue price of ₹124. Such a positive signal suggests strong investor interest in the upcoming IPO.
With a robust position in the global aerospace component market, Aequs is well-placed to benefit from increasing demand from major aircraft manufacturers like Boeing and Airbus. Despite facing losses in previous financial years, the company's operational profitability in the aerospace segment and plans for debt repayment indicate a promising turnaround ahead.
Considering the valuation at ₹124, Aequs stock is priced at 8.7x EV/Sales post-issue capital. Analysts recommend subscribing to the issue, highlighting the potential for future profitability as the company optimizes its operations and expands its market reach.
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