Aequs Limited IPO: Check the GMP, financial analysis, peer comparison and more

Synopsis: Aequs Limited is launching its Initial Public Offering (IPO) to raise capital primarily for Repayment of certain outstanding borrowings and investment in three of the wholly-owned Subsidiaries. The IPO comprises a fresh issue of 5.4 crore shares worth Rs. 670 crore and an offer for sale of 2.03 crore shares worth Rs. 251.81 crore, bringing the total issue size to Rs. 921.81 crore.

Aequs Limited IPO opens on December 3, 2025, and closes on December 5, 2025, with shares set to be listed on NSE and BSE on Friday December 10, 2025. Here’s a complete overview of the issue.

Aequs Limited’s IPO is priced between Rs. 118 to Rs. 124 per share with a lot size of 120 shares. Retail investment is Rs. 14,880 (120 shares at the upper price). For S-HNI, the investment is 14 lots (1,680 shares) totaling Rs. 2,08,320, and for B-HNI, a minimum of 68 lots (8,160 shares) totaling Rs. 10,11,840.

GMP of Aequs Limited IPO

As of December 3, 2025, the shares of Aequs Limited in the grey market were trading at a 37.5 percent premium. The shares in the Grey Market traded at Rs. 170.5. This gives it a premium of Rs. 46.5 per share over the upper price band of Rs. 124.

Overview of Aequs Limited

Aequs Ltd., incorporated in 2000, is a manufacturing and special economic zone operator in India, offering fully vertically integrated capabilities primarily for the aerospace segment. The company produces a wide range of aerospace components, including engine systems, landing systems, cargo and interiors, structures, assemblies, and turning parts, serving both single-aisle aircraft (A220, A320, B737) and long-range aircraft (A330, A350, B777, B787). Over the years, Aequs has also expanded into consumer electronics, plastics, and consumer durables.

As of September 30, 2025, the company had manufactured over 5,000 aerospace products across various programs with its clients. Its product portfolio spans structures (brackets, wing flap supports, floorboards), interiors and cargo (panels, seat components, power trays), landing systems (main gear, brackets, assemblies), and actuation systems (actuator pistons, housings, mounting components).

The company’s workforce comprises 1,892 full-time employees, 1,834 contractual staff, 55 trainees, 432 apprentices, and 325 fixed-term employees, reflecting a robust talent base to support its manufacturing and assembly operations.

Promoters of Aequs Limited

Aequs Limited’s promoters are Aravind Shivaputrappa Melligeri, Aequs Manufacturing Investments Private Limited, Melligeri Private Family Foundation And The Melligeri Foundation, who together play a key role in guiding the company’s vision, strategy, and growth.

Aequs Limited Selling Shareholders

The Aequs Limited IPO features a significant Offer for Sale, with promoter Melligeri Private Family Foundation selling 13.23 lakh equity shares and Aequs Manufacturing Investments Private Limited selling around 1 lakh equity shares each. 

The Investor Selling Shareholder are Amicus Capital Private Equity I LLP selling around 74.82 lakh equity shares, Amicus Capital Partners India Fund II selling around 88.8 lakh equity shares, Amicus Capital Partners India Fund I selling around 7.54 lakh equity shares, Raman Subramanian selling 25,000 equity shares, Ravindra Mariwala selling around 8.71 lakh shares, Vasundhara Dempo Family Private Trust selling around 4.35 lakh shares and Girija Dempo Family Private Trust selling around 4.35 lakh shares.

Lead Managers of Aequs Limited

JM Financial Limited, Kotak Mahindra Capital Company Limited and IIFL Capital Services Limited are the book-running lead managers for the IPO. KFin Technologies Limited is the registrar handling the offer process.

Objectives of the IPO Offer

Aequs Limited intends to use the net proceeds from its IPO for two main purposes: around Rs. 433.17 crore to repayment of certain outstanding borrowings and investment in three of the wholly-owned Subsidiaries, Rs. 64 crore towards purchase of machinery and equipment by company and wholly-owned Subsidiaries, AeroStructures Manufacturing India Private Limited and remaining for Funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purpose.

Financial Analysis of Aequs Limited

Aequs Limited reported revenue of ₹924.6 crore in FY25, down 4.2% YoY from ₹965.07 crore in FY24, while its net loss widened significantly to ₹102.34 crore from ₹14.24 crore in the previous year, reflecting higher operational and financial pressures.

In terms of return ratios, the company reports a Return on Capital Employed (RoCE) of 0.87 percent and Debt to equity stands at 0.99. 

Aequs Limited Vs Peers

Aequs reported an EPS of Rs. -1.80 and a RoNW of -14.47 percent. In comparison, Azad Engineering Limited’s EPS of Rs. 14.66 and its RoNW of 6.21 percent. Unimech Aerospace and Manufacturing Limited reported Rs. 17.59 EPS, and a RoNW of 12.48 percent. 

Aequs Limited’s net asset value per share is Rs. 12.47, compared to Rs. 672.61 for Amber Enterprises India Limited and Rs. 439.85 for Kaynes Technology India Limited.

Strengths of Aequs Limited

• The company has advanced and vertically integrated precision manufacturing capabilities.
• The company has operations in unique, engineering-led, vertically integrated precision manufacturing ecosystems.
• The company has a manufacturing presence across three continents with strategic proximity to end customers.
• The company has a comprehensive precision product portfolio across high-value segments.
• The company has long-standing relationships with high-entry-barrier global customers.
• The company has a founder-led business supported by an experienced management team and a qualified employee base.

Weaknesses of Aequs Limited 

• The company earns a major part of its revenue from the Aerospace Segment; any drop in demand could impact its business and financials.
• The company depends heavily on its top ten customer groups, any disruption in these relationships could negatively impact its business and financials.
• The company’s OEM contracts are requirement-based without fixed order obligations; contract termination or reduced customer demand could adversely impact its business and financials.
• The company requires significant capital expenditure to maintain and upgrade its manufacturing facilities; limited access to capital could adversely impact its business and financials.
• The company plans to use part of the Net Proceeds to expand capacity, but cannot guarantee current utilization levels; any slowdown or shutdown in manufacturing could adversely affect business and financials.
• The company is exposed to raw material price fluctuations and supply disruptions, which could adversely impact its business and financials.

Conclusion

Aequs Limited is a founder-led aerospace manufacturing company with advanced, vertically integrated capabilities, a global footprint, and strong customer relationships. While it faces typical sector challenges such as dependence on key customers and capital-intensive operations, the company’s strategic expansion plans, diversified product portfolio, and experienced management position it well; investors should consider these risks while evaluating and applying for the IPO.

Written By Akshay Sanghavi

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