Aequs IPO grey market premium at 34% as subscription opens Wednesday

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Aequs shares were quoting a grey market premium of about 34 percent ahead of the company’s initial public offering opening for public subscription on Wednesday.

The contract manufacturing firm, which operates in consumer durables, plastics and aerospace components, has fixed a price band of Rs 118–124 per share for its Rs 922-crore IPO. At the upper end of the band, the company’s valuation stands at more than Rs 8,300 crore.

The issue will open on December 3 and close on December 5. Allocation to anchor investors is scheduled for December 2, the company said.

Grey market trackers showed the shares commanding a premium of roughly 34–35 percent in the unofficial market. Investorgain pegged the GMP at Rs 42.5, indicating a potential listing gain of 34.27 percent, while IPO Watch indicated a premium of 34.67 percent.

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Proceeds from the fresh issue will be used to repay debt at the company and its subsidiaries — AeroStructures Manufacturing India and Aequs Consumer Products — and to purchase machinery and equipment for the company and AeroStructures. Funds will also be deployed for potential acquisitions, strategic initiatives and general corporate purposes.

Aequs, which began as an aerospace-focused manufacturer, has expanded into consumer electronics, plastics and durable goods. Its product portfolio includes cookware, small home appliances, outdoor toys, figurines, toy vehicles and components for electronics such as portable computers and smart devices.

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

Key clients in the aerospace segment include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton and Sabca. Its consumer products customers include Hasbro, Spinmaster, Wonderchef and Tramontina.

Aequs operates manufacturing facilities in India, France and the United States, including clusters in Belagavi, Hubballi and Koppal in Karnataka.

The company was founded by Aravind Melligeri, who earlier co-founded Quest Global Engineering.

Aequs is scheduled to list its shares on December 12.

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