Aequs Shares Surge 22.18% in Strong Market Debut on BSE and NSE

Aequs, a firm known for contract manufacturing in aerospace and consumer goods, saw its shares close with a 22.18% premium over the issue price of Rs 124. The stock opened at Rs 140 on both BSE and NSE, marking a 12.90% rise. During trading, it peaked at Rs 157, a 26.61% increase, before closing at Rs 151.50 on BSE and Rs 150 on NSE.

The company's market valuation reached Rs 10,160.58 crore on the BSE by the session's end. Aequs' Initial Public Offering (IPO), valued at Rs 922 crore, was oversubscribed by 101.63 times when it closed on Friday. The IPO had a price range of Rs 118-124 per share.

IPO Details and Fund Utilisation

The IPO comprised a fresh issue of shares worth Rs 670 crore and an Offer For Sale (OFS) of 2.03 crore shares valued at Rs 252 crore from promoters and existing investors. The total issue size amounted to Rs 922 crore. Funds from the fresh issue are earmarked for loan repayment for Aequs and its subsidiaries, AeroStructures Manufacturing India and Aequs Consumer Products.

Additionally, the funds will be used to purchase machinery for the company and AeroStructures, support future growth through potential acquisitions, other strategic initiatives, and general corporate needs.

Company Operations and Investor Support

Aequs has primarily focused on the aerospace sector but has diversified into consumer electronics, plastics, and durable goods over time. The company is supported by notable investors such as Amicus Capital, Amansa Capital, Steadview Capital, Catamaran (the family office of Infosys founder N R Narayana Murthy), and Sparta Group.

The company's key aerospace clients include Airbus, Boeing, Bombardier, Collins Aerospace, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, and Sabca. In consumer products, it serves Hasbro, Spinmaster, Wonderchef, and Tramontina.

Manufacturing Presence

Aequs operates manufacturing facilities in India, France, and the US. In India specifically, it runs three clusters located in Belagavi, Hubballi, and Koppal in Karnataka.

The company's expansion into various sectors highlights its strategic growth approach while maintaining strong ties with major global clients across different industries.

With inputs from PTI