Aequs IPO GMP rises ahead of subscription next week; check price band, other key details

Aequs shares are scheduled to be listed on December 10, with allotment expected on December 8.

Aequs Ltd’s initial public offering (IPO) will open for public subscription next week, with the company’s shares showing a steady premium in the grey market ahead of the share sale.

Platforms tracking the unregulated market activity indicated that the Aequs shaers are quoting a grey market premium (GMP) of around 15–20 percent. Investorgain reported a GMP of Rs 26 per share, suggesting a potential listing gain of nearly 21 percent, while IPO Watch pegged the premium at about 15 percent.

The contract manufacturing company, which operates in consumer durable goods and aerospace components, on Friday fixed a price band of Rs 118–124 per share for its Rs 922-crore public issue. At the top end of the band, the company’s valuation would be a little over Rs 8,300 crore.

The public offer will open on December 3 and close on December 5. Allocation to anchor investors is scheduled for December 2.

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Proceeds from the fresh issue will be used to repay borrowings of the company and two subsidiaries — AeroStructures Manufacturing India and Aequs Consumer Products. Funds will also go towards purchasing machinery and equipment for Aequs and AeroStructures, as well as future growth initiatives, potential acquisitions, and general corporate purposes.

Earlier this month, Aequs raised about Rs 144 crore in a pre-IPO round from SBI Funds Management, DSP India Fund and Think India Opportunities Fund.

The company, which began with a focus on the aerospace sector, has diversified into consumer electronics, plastics and consumer durables. Its consumer products portfolio includes cookware and small home appliances, while its plastics division makes outdoor toys, figurines, toy vehicles and components for consumer electronics, including portable computers and smart devices.

Shares of Aequs are scheduled to be listed on December 10, with allotment expected on December 8.

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