Day 1: Aequs' ₹922-Cr IPO Subscribed 3.42 Times

The initial share sale of Aequs Ltd, a contract manufacturing firm specialising in consumer durable goods and aerospace parts, sailed through within hours of the start of the bidding process on Wednesday and finally ended the day with 3.42 times subscription.

The company's Rs 922-crore Initial Public Offering (IPO) received bids for 14,36,44,200 shares against 4,20,26,913 shares on offer, translating into 3.42 times subscription, as per NSE data.

Among investor categories, the Retail Individual Investors (RIIs) portion fetched 11.46 times subscription, while non-institutional investors received 3.40 times subscription. The Qualified Institutional Buyers (QIBs) quota got subscribed 66 per cent. On Tuesday, Aequs said it has garnered Rs 414 crore from anchor investors.

The initial share sale will conclude on December 5. The price band has been fixed at Rs 118-124 per share for the issue, valuing Aequs at over Rs 8,300 crore.

The IPO has a fresh issue of shares worth Rs 670 crore, along with an offer for sale (OFS) of 2.03 crore shares valued at Rs 252 crore by promoters and existing investors, taking the total issue size to Rs 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, other strategic initiatives, and for general corporate needs.

Last month, Aequs raised around Rs 144 crore from SBI Funds Management, DSP India Fund and Think India Opportunities Fund as a part of a pre-IPO funding round.

Aequs initially filed confidential draft papers with Sebi in June and secured approval in September to launch the IPO.

By opting for the confidential pre-filing route, the company could delay public disclosure of IPO details until later stages, a strategy increasingly adopted by Indian firms seeking flexibility in their IPO planning.

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.