Aequs shares set to list tomorrow after IPO garners 102x subscription: What to expect?

Aequs shares to list tomorrow: What to expect?

The shares of Aequs are set to debut on stock markets tomorrow, December 9. Grey market estimates hint towards a decent listing for the contract manufacturing firm, which operates in consumer durables, plastics and aerospace components.

This comes after the Rs 922-crore IPO saw strong investor interest during its three days of public bidding, being subscribed nearly 102 times its offer size between December 3 and December 5.

Aequs IPO GMP:

Ahead of listing, the unlisted shares of Aequs were trading with more than 24 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. The GMP quoted by the site has fallen steadily over the days, from 34.68 percent quoted on the day the IPO closed for public bidding on December 5.

According to IPO Watch, the unlisted shares of the company were trading with 27.42 percent GMP over the IPO price.

About Aequs IPO:

Aequs launched its IPO to raise around Rs 922 crore through a fresh issue of shares worth Rs 670 crore and an offer-for-sale (OFS) of shares worth Rs 251.81 crore. The price band has been set at Rs 118-124 per share.

Investors could bid for a minimum of 120 shares, requiring an investment of Rs 14,880 at the upper price band, and in multiples thereafter.

What to expect?

Aequs is a vertically integrated precision manufacturing company headquartered in Karnataka's Belagavi, operating India's first precision engineering SEZ and serving both the aerospace and consumer segments, said Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers.

"We expect the company to list at premium to its issue price, given the current Grey Market Premium. At the upper price band, the company is valued at 8.9x FY25 P/S, implying a post-issue market cap of Rs 83,161 million and an EV/EBITDA of 122.9x," the analyst said.

Solanki said investors may consider booking partial profits on listing and holding the rest for long-term post listing.

Prashanth Tapse, Research Analyst at Mehta Equities, expects Aequs to list in the range of Rs 154-160 per share, translating into a 24-39 percent premium over the issue price. It said that this will be supported by strong subscription traction and investor interest in one of India’s most advanced, fully integrated aerospace precision-manufacturing platforms.

"On FY2026 annualised earnings, the company is asking for a price-to-book multiple of 5.7x, which appears reasonable compared with listed peers trading at an average of ~10x. Given its strong competitive positioning, global customer relationships, and alignment with India’s expanding aerospace manufacturing opportunity, we recommend that allotted investors ‘Hold for long term'," Tapse said.

Aequs stands out because it offers a "one-stop shop" manufacturing model - from forging to finishing to final assembly — giving it a competitive edge in quality, compliance and delivery reliability that few contract manufacturers match, said Mahesh M. Ojha, VP - Research & Business Development at Kantilal Chhaganlal Securities.

"Compared with other aerospace and precision-engineering players, Aequs operates in a higher-value niche but remains in the early stages of profitability,” he said. “The company is currently valued at 8.9× price-to[1]sales and 122.9× EV/EBITDA, which reflects both its strategic positioning and the market’s expectation of margin expansion as volumes scale," he added.

Ojha advised investors to consider booking partial profits on listing gains and holding the rest for long term.

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