The Indian primary market is buzzing with excitement as Aequs Ltd., a significant player in the specialized aerospace manufacturing sector, gears up for its Initial Public Offering (IPO). For investors looking to tap into the precision engineering space, understanding every facet of this offering is crucial. We break down the details of the Aequs IPO, from its core business to its financial health and what the funds will be used for.
Understanding Aequs Ltd.: Engineering Excellence on a Global Scale
Established in the year 2000, Aequs Ltd. has carved a niche for itself by focusing on vertically integrated manufacturing within the demanding Aerospace Segment in India. They don't just build parts; they provide end-to-end solutions, operating within a special economic zone structure.
Core Business Focus and Product Portfolio
While aerospace remains their bedrock, the company has strategically diversified its manufacturing expertise. Key areas include:
- Aerospace Manufacturing: Specializing in engine systems, landing gear components, cargo interiors, and structural parts. They serve major global aircraft programs like A320, B737, A350, and B787.
- Diversified Segments: Leveraging their precision capabilities into consumer electronics, plastics, and consumer durables for dedicated client programs.
Competitive Edge in the Industry
In a high-barrier industry, Aequs boasts several strengths that differentiate it:
- Advanced, vertically integrated precision manufacturing infrastructure.
- A strategic global manufacturing presence across three continents, ensuring proximity to major aerospace clients.
- Strong, established relationships with globally recognized customers in high-value segments.
- A foundation built on strong, experienced leadership and a skilled technical workforce.
The Aequs IPO Structure and Dates at a Glance
This is a Book Build Issue aggregating to a substantial ₹921.81 crores. It is structured as a combination of a fresh issue to raise capital for the company and an Offer for Sale (OFS) by existing shareholders.
Key IPO Metrics Summary
| Parameter | Details | Value |
|---|---|---|
| Issue Type | Bookbuilding | Mainboard |
| Face Value | ₹10.00 per share | - |
| Price Band | ₹118.00 to ₹124.00 | Per Share |
| Total Issue Size | ₹921.81 Crores | - |
| Fresh Issue Size | ₹670.00 Crores | 5.40 Crore Shares |
| Offer for Sale (OFS) | ₹251.81 Crores | 2.03 Crore Shares |
Application Timeline: Crucial Dates to Remember
Mark your calendars for the subscription window:
| Activity | Tentative Date |
|---|---|
| IPO Opens | Wednesday, December 3, 2025 |
| IPO Closes (Last Day to Apply) | Friday, December 5, 2025 |
| Basis of Allotment Finalization | Monday, December 8, 2025 |
| Shares Credit to Demat / Refund Initiation | Tuesday, December 9, 2025 |
| Tentative Listing Date on BSE & NSE | Wednesday, December 10, 2025 |
Investment Sizing: Understanding Lot Details
The application is based on pre-defined lot sizes. For retail investors, the minimum investment calculation is based on the upper price band.
Lot Size Breakdown
| Investor Category | Minimum Lots | Shares Per Lot | Minimum Investment Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 120 | ₹14,880 |
| sNII (Small NII) | 14 | 1,680 | ₹2,08,320 |
Allocation Snapshot: Who Gets What?
The IPO has a clear reservation structure aimed at different investor classes:
| Investor Category | Reservation Limit (of Net Offer) |
|---|---|
| Qualified Institutional Buyers (QIB) | Not less than 75% |
| Retail Individual Investors (RII) | Not more than 10% |
| Non-Institutional Investors (NII) | Not more than 15% |
Financial Health Check and Valuation Insights
Analyzing the company's reported financials provides context for the potential valuation. Note the figures below are provided as Restated Consolidated data.
Performance Snapshot (Amount in ₹ Crore)
| Metric | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Total Income | 565.55 | 959.21 | 988.30 |
| Profit After Tax (PAT) | -16.98 | -102.35 | -14.24 |
| Total Assets | 2,134.35 | 1,859.84 | 1,822.98 |
*Note: The data indicates fluctuations in revenue and significant PAT losses in recent periods ending March 2025, which requires close examination of the RHP.*
Key Performance Indicators (As of March 31, 2025)
Several indicators suggest challenges in profitability during this period:
- Return on Equity (ROE): -14.30%
- PAT Margin: -11.07%
- Debt/Equity Ratio: 0.99 (Indicating debt levels nearing equity)
Post-IPO valuation metrics are calculated against annualized earnings as of September 30, 2025.
The Purpose Behind the Proceeds: IPO Objectives
A significant portion of the capital raised from the fresh issue is earmarked for deleveraging the company's debt burden.
Utilization of Net Proceeds (In ₹ Crores)
| Objective | Allocated Amount (₹ Cr) |
|---|---|
| Repayment/Prepayment of Borrowings (Company & Subsidiaries) | 433.17 |
| Funding Capital Expenditure (Machinery & Equipment) | 64.00 |
| Funding Inorganic Growth & General Corporate Purposes | Approx. 139.48 (Combined) |
The focus on debt reduction aims to improve the balance sheet health post-listing.
Promoter Stability and Ownership Structure
The promoter group, which includes Aravind Shivaputrappa Melligeri and various related foundations/entities, holds a significant stake.
Shareholding Pattern
| Holding Status | Percentage |
|---|---|
| Promoter Holding (Pre-Issue) | 64.48% |
| Post-Issue Promoter Holding | To be calculated post-issue |
SWOT Analysis of Aequs Ltd.
To frame an investment perspective, it is helpful to assess the company's inherent strengths and potential vulnerabilities:
Strengths (Internal Positives)
- Deep specialization and high entry barriers in precision aerospace manufacturing.
- Established global footprint providing supply chain benefits.
- Long-term contracts with major global aircraft original equipment manufacturers (OEMs).
Weaknesses (Internal Negatives)
- Recent history of negative profitability (PAT losses as per latest filings).
- High proportion of contractual and fixed-term employees, indicating potential workforce stability considerations.
Opportunities (External Positives)
- Growing global commercial aviation sector, increasing demand for aerospace components.
- Potential for expanding operations in non-aerospace segments using existing manufacturing skillsets.
Threats (External Negatives)
- Dependence on global supply chain stability and geopolitical factors affecting the aerospace industry.
- High working capital needs typical of large-scale precision manufacturing contracts.
Logistics and Support Contacts
Should you need to reach out regarding the application process or company details, here are the primary contacts:
Company Contact Information
- Registrar: Kfin Technologies Ltd.
- Registrar Contact: 04067162222, 04079611000
- Registrar Email: aequs.ipo@kfintech.com
- Company Address: Aequs Tower, No. 55, Whitefield Main Road, Bengaluru, Karnataka, 560048
How to Navigate the Application Process
The modern IPO application process heavily relies on standardized banking procedures like ASBA or UPI mandates. When applying through popular digital brokerage platforms, the steps generally involve:
- Logging into your chosen broker's online portal or application.
- Navigating to the IPO section and selecting the Aequs IPO.
- Specifying the desired price (usually the cut-off price for retail) and the number of lots.
- Confirming the application using the linked UPI ID, which triggers a mandate request on your UPI app (like Net Banking or BHIM).
- Approving the mandate request promptly, as missing the cut-off time (5 PM on the closing day) can invalidate the application.
Final Takeaway on the Aequs IPO
The Aequs IPO presents an opportunity to invest in a company with deep domain expertise in the aerospace supply chain—a sector known for high entry barriers and long-term viability, provided global aerospace activity remains robust. However, investors must weigh the strong technical foundation against the recent financial performance, particularly the noted volatility in profitability. Thorough due diligence of the Red Herring Prospectus (RHP) is essential before making any commitment.