Aequs IPO Shares Make Strong Market Debut, List at 13% Premium

Shares of Aequs, a contract manufacturing firm specialising in consumer durable goods and aerospace parts, on December 10 listed with a premium of 13% against the issue price of Rs 124.

The stock began trading at ₹140 apiece on both the BSE and NSE, reflecting a gain of 12.90%.

Later, the shares further rallied nearly 22% to touch ₹151.15 and ₹151 apiece on bourses.

The company's market valuation stood at ₹9,989.56 crore on the BSE.

The ₹922-crore Initial Public Offering (IPO) of Aequs received 101.63 times subscription on the closing day of share sale on Friday.

It had a price band of ₹118-124 per share for the issue.

The IPO has a fresh issue of shares worth ₹670 crore, along with an Offer For Sale (OFS) of 2.03 crore shares valued at ₹252 crore by promoters and existing investors, taking the total issue size to ₹922 crore.

Funds raised from the fresh issue would be used for repaying loans taken by the company and its two subsidiaries — AeroStructures Manufacturing India and Aequs Consumer Products, purchasing machinery and equipment for the company and AeroStructures, and supporting future growth through potential acquisitions, and other strategic initiatives.

A portion of proceeds will also be used for general corporate needs. Aequs primarily operates in the aerospace segment, but over the years, it has expanded its product portfolio to consumer electronics, plastics, and consumer durables.

Its consumer products include cookware and small home appliances, while its plastics offerings include outdoor toys, figurines, toy vehicles and components for consumer electronics such as portable computers and smart devices.

The company is backed by prominent investors, including Amicus Capital, Amansa Capital, Steadview Capital, Catamaran — the family office of Infosys founder N R Narayana Murthy — and Sparta Group.

Its key clients are Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems Inc, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton and Sabca in aerospace, and Hasbro, Spinmaster, Wonderchef and Tramontina in consumer products.

It operates manufacturing facilities across India, France and the US. In India, the company runs three manufacturing clusters in Belagavi, Hubballi, and Koppal in Karnataka.