Aequs IPO GMP Jumps to Rs. 42, Hinting at 33.87% Gains; Subscription Opens Dec 3: Full Details Inside

Another big week for mainboard IPOs is ahead as major issues are lined up for subscription. One of them is the Aequs IPO worth Rs. 921.81 cr, which is opening on December 3rd. Ahead of its launch, the Aequs IPO GMP today stands at Rs. 42, suggesting a potential listing gain of 33.87% per share.

Aequs IPO Details: Issue Size, Structure & Dates

The Aequs IPO is a book-built issue worth Rs. 921.81 crore. The offer comprises both fresh issue offers for sale. The Aequs IPO opens for subscription on December 3 and closes on December 5. The Aequs IPO allotment date is expected on December 8, while the shares are scheduled to list on both BSE and NSE on December 10.

The Aequs IPO price band has been fixed at Rs. 118 to Rs. 124 per share, and the lot size for retail investors is 120 shares per application.

Objects of the Aequs IPO Issue: Use of Proceeds

According to the company's RHP, the proceeds of the Aequs IPO will be used for the following purposes:

• Repayment/prepayment of certain borrowings and related penalties
• Investment in three wholly-owned subsidiaries
• Funding capex for purchase of machinery and equipment

Should You Subscribe to the Aequs IPO?

Brokerage house Swastika Investmart Limited has assigned a "Subscribe" rating to the Aequs IPO, with a note of caution for conservative investors. The firm noted Aequs as a "unique, high-entry-barrier play in the aerospace and defence supply chain". However, it also talked about some risks that are:

• The company is currently loss-making.
• Return ratios remain negative
• A significant portion of IPO proceeds will go toward debt repayment rather than new growth.

Yet, the brokerage firm also highlights that the IPO is priced attractively compared to peers, "Priced significantly lower on a Price-to-Book basis (~9.9x vs 15-20x for peers). Aggressive investors may consider subscribing for long-term gains in a niche theme."

About Aequs Limited

Aequs Limited is a precision manufacturing company primarily known for its aerospace component production, with significant operations in other sectors such as consumer electronics, plastics, and consumer durables. The company is headquartered in Belagavi, Karnataka, and has additional integrated manufacturing clusters in Hubballi and Koppal, along with facilities in the United States and France.

Aequs is known for its high-precision manufacturing capabilities, particularly within the aerospace sector. Its product portfolio includes engine system components, landing system parts, cargo and interior systems, aerospace structures and assemblies, and turning components.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.