Aequs Limited Makes Strong Debut with 12.90% Premium, Lists at ₹140.00 Against Outstanding Subscription

Aequs Limited, engaged in manufacturing precision components primarily for aerospace segment producing over 5,000 products including structures, interiors and cargo, landing systems, and actuation systems for commercial aircraft programs including A220, A320, B737, A330, A350, B777, and B787, also manufacturing consumer electronics, plastics, and consumer durables, operating vertically integrated manufacturing ecosystem in special economic zone with manufacturing presence across three continents and 4,538 employees, made a strong debut on BSE and NSE on December 10, 2025.

Aequs IPO Listing Details

Aequs IPO launched at ₹124 per share with minimum investment of 120 shares costing ₹14,880. The IPO received outstanding response with subscription of 104.30 times - retail investors at 81.03 times, QIB at 122.93 times, NII at 83.61 times, indicating overwhelming investor confidence in aerospace precision manufacturing business despite negative earnings with ₹102.35 crore loss in FY25.

First-Day Trading Performance

Listing Price: Aequs opened at ₹140.00 representing premium of 12.90% from issue price of ₹124.00, touched high of ₹148.00 (up 19.35%) and low of ₹135.50 (up 9.27%), with VWAP at ₹141.32, reflecting strong market reception with solid listing gains supported by outstanding subscription of 104.30 times despite persistent losses, indicating investor confidence in aerospace sector prospects.

Growth Drivers and Challenges

Growth Drivers:

• Aerospace Market Leadership: Advanced vertically integrated precision manufacturing capabilities serving high entry barrier global aerospace customers, producing over 5,000 products for commercial aircraft programs, long-standing relationships with major aerospace OEMs providing stable revenue visibility.
• Global Manufacturing Footprint: Manufacturing presence across three continents with strategic proximity to end customers, operations in engineering-led vertically integrated precision manufacturing ecosystems in special economic zone, comprehensive product portfolio across structures, interiors, landing systems, and actuation systems.
• Diversified Customer Base: Serving aerospace segment alongside consumer electronics, plastics, and consumer durables, founder-led business supported by experienced management team and qualified employee base of 4,538 personnel including engineers and technicians, bright prospects ahead considering global customer lists according to analyst review.

Challenges:

• Persistent Losses: Loss of ₹102.35 crore in FY25 representing massive 619% deterioration from loss of ₹14.24 crore in FY24, negative ROE of 14.30%, negative RoNW of 14.47%, PAT margin of negative 11.07%, though aerospace division making profits, other businesses continuing to make losses.
• Revenue Decline: Revenue decreased 3% from ₹988.30 crore in FY24 to ₹959.21 crore in FY25 indicating top-line challenges, negative operating cash flows creating liquidity concerns despite EBITDA margin of 11.68%.
• High Leverage and Valuation: Debt-to-equity of 0.99, total borrowings of ₹437.06 crore creating financial leverage concerns, issue priced at negative P/E ratio, price-to-book of 9.94x despite negative earnings, significant portion of IPO proceeds ₹433.17 crore allocated to debt repayment indicating balance sheet stress, promoter dilution from 64.48% to 59.09%.

Utilisation of IPO Proceeds

• Debt Repayment: ₹433.17 crore for repayment and prepayment of outstanding borrowings by company and three wholly owned subsidiaries including AeroStructures Manufacturing India Private Limited (₹174.82 crore), Aequs Consumer Products Private Limited (₹231.16 crore), and Aequs Engineered Plastics Private Limited (₹9.63 crore).
• Capacity Expansion: ₹64.00 crore for funding capital expenditure on purchase of machinery and equipment by company and subsidiary AeroStructures Manufacturing India Private Limited enhancing manufacturing capabilities.
• Strategic Growth: ₹125.21 crore for funding inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes supporting business expansion and operational flexibility.

Financial Performance

• Revenue: ₹959.21 crore for FY25, decline of 3% from ₹988.30 crore in FY24, reflecting challenges in scaling aerospace precision manufacturing business despite comprehensive product portfolio serving major commercial aircraft programs globally.
• Net Loss: Loss of ₹102.35 crore in FY25, massive deterioration of 619% from loss of ₹14.24 crore in FY24, primarily due to losses in consumer electronics, plastics, and consumer durables segments while aerospace division remains profitable.
• Financial Metrics: Negative ROE of 14.30%, ROCE of 0.87%, debt-to-equity of 0.99, negative RoNW of 14.47%, PAT margin of negative 11.07%, EBITDA margin of 11.68%, price-to-book of 9.94x, post-issue EPS of negative ₹0.51, P/E not meaningful due to losses, net worth of ₹707.53 crore, total borrowings of ₹437.06 crore, and market capitalisation of ₹9,607.29 crore.