For investors, it can be quite challenging to decide if the Aequs IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Aequs IPO. This will help you analyze the strengths, risks, and financial details of the Aequs IPO, improving your investment decision.
About Company
Aequs is the only precision components company in India to offer fully integrated manufacturing for the aerospace sector. What sets them apart is that they provide fully integrated parts for aerospace, which gives them an advantage over other contract manufacturers who only offer a few services. Precision components are precisely machined parts made to exact requirements, primarily sold to original equipment manufacturers (OEMs) and system integrators. Other than the aerospace sector, the company also manufactures consumer products such as cookware and small home appliances, plastic products like outdoor toys, figurines, and toy vehicles.
Aequs has the largest aerospace product portfolio in India, including components for engine systems, landing systems, cargo and interiors, structures, assemblies, and turning parts for aerospace clients. Even though the company’s main business lies in the aerospace sector, over the years, it has also expanded into consumer electronics, plastics, and consumer durables. Furthermore, the company has produced over 4,500 aerospace products as of March 31, 2025.
Strengths
- Aequs uses advanced and fully integrated precision manufacturing capabilities for India’s aerospace segment, including machining, forging, surface treatment, and assembly.
- The company has 15 years of established track record in the aerospace industry with a portfolio of 5000+ Aerospace products.
- The company has reduced debt, making it almost debt-free.
- Aequs has an established, strong global presence across major countries like the USA, the US, Hong Kong, and France.
- The company is led by a strong promoter background and an experienced management team.
Weaknesses
- The company mostly depends on its top 3 customers for its revenue.
- Aequs required a lot of capital to upgrade the equipment and machinery in the manufacturing units. If unable to get the necessary funds on time, it can badly affect the business, cash flow, and financial condition.
- The company’s working capital days have gone up from 13.7 days to 220 days.
- Aequs has a weak financial track record, as it has reported losses in previous years.
Aequs IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Lakshmishree Investment & Securities Ltd | Apply |
| Aditya Birla Money Limited | Apply |
| Anand Rathi | Apply |
| Arihant Capital Markets Ltd | Apply |
| BP Equities (BP Wealth) | Apply |
| Canara Bank Securities Ltd | Apply |
| DRChoksey FinServ Pvt Ltd. | Apply |
| SBICAP Securities Limited | Apply |
| Swastika Investmart Ltd | Apply |
| Ventura Securities Limited | Apply |
Aequs IPO Details
| IPO Open Date: | December 3, 2025 |
| IPO Close Date: | December 5, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹118 to ₹124 Per Share |
| Issue Size: | ₹921.81 Crores |
| Fresh Issue: | ₹670 Crores |
| Offer-for-Sale | up to 2,03,07,393 equity shares |
| Registrar | Kfin Technologies Ltd. |
| IPO Lead Managers | JM Financial Ltd. IIFL Capital Services Ltd. Kotak Mahindra Capital Co. Ltd. |
| Basis of Allotment | December 8, 2025 |
| IPO Listing Date: | December 10, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | 30 Sep 2025 | 31 Mar 2025 | 31 Sep 2024 |
| Total Income | ₹565.55 Crores | ₹959.21 Crores | ₹475.51 Crores |
| EBITDA | ₹84.11 Crores | ₹107.97 Crores | ₹57.82 Crores |
| EBITDA Margin | 15.66% | 11.68% | 7.76% |
| Profit after Tax (PAT) | ₹-16.98 Crores | ₹-102.35 Crores | ₹-71.70 Crores |
| Net Worth | ₹796.04 Crores | ₹707.53 Crores | ₹731.65 Crores |
| Reserves and Surplus | ₹200.43 Crores | ₹135.09 Crores | ₹-90.83 Crores |
| Total Borrowings | ₹533.51 Crores | ₹437.06 Crores | ₹384.79 Crores |
Key Indicators
| KPI | Values |
| ROE | -14.30 |
| ROCE | 0.87 |
| Debt/Equity | 0.99 |
| RoNW | -14.47 |
| PAT Margin | -11.07% |
| EBITDA Margin | 11.68% |
| Price to Book Value | 9.94 |
| Market Capitalization | ₹8,316.06 Cr. |
Peer Comparison with the Company
| Name of the Company | Face Value (₹) | Basic EPS (₹) | Diluted EPS(₹) | RONW (%) | P/E Ratio | NAV(₹) |
| Aequs Limited | 10 | (1.80) | (1.80) | (14.47%) | [●] | 12.47 |
| Listed Peers | ||||||
| Azad Engineering Limited | 2 | 14.66 | 14.66 | 6.21% | 115.48 | 234.06 |
| Unimech Aerospace and Manufacturing Limited | 5 | 17.59 | 17.59 | 12.48% | 55.73 | 141.01 |
| Amber Enterprises India Limited | 10 | 72.01 | 71.67 | 10.99% | 100.40 | 672.61 |
| Kaynes Technology India Limited | 10 | 45.82 | 45.40 | 10.33% | 129.59 | 439.85 |
| Dixon Technologies (India) Limited | 2 | 205.70 | 202.58 | 47.50% | 73.87 | 494.74 |
| PTC Industries Limited | 10 | 41.37 | 41.33 | 4.40% | 417.03 | 940.03 |
Promoters & Track Records, if any
- Aravind Shivaputrappa Melligeri, born on May 24, 1968, aged 57 years, is the Executive Chairman and Chief Executive Officer of the Company. He holds 1,000,000 Equity shares, representing 0.16% of the pre-Offer paid-up Equity Share capital in the company.
- Aequs Manufacturing Investments Private Limited holds 290,808,225 Equity shares, representing 47.16% of the pre-Offer paid-up Equity Share capital in the company.
- Melligeri Private Family Foundation holds 101,761,570 Equity shares, representing 16.50% of the pre-Offer paid-up Equity Share capital in the company.
Industry Peer Group P/E ratio
The Aerospace industry P/E ratio for the period ranged from a low of 55.73 to a high of 417.03, with an average of 148.69.
Expansion
- The proceeds raised from the fresh issue will be utilized for the prepayment/repayment of the existing borrowings taken by the company.
- A portion of the funds will be used towards prepayment/repayment of the existing borrowings and any related penalties of the two wholly-owned subsidiaries.
- Some funds will be utilized for the purchase of machinery and equipment by the company.
- Certain funds will be used towards buying machinery and equipment for our wholly-owned subsidiary, AeroStructures Manufacturing India Private Limited.
- Lastly, the remaining funds will be used for the company’s general corporate purposes and strategic initiatives.
Aequs IPO – Should You Apply or Not?
Aequs IPO offers a strong presence in the precision manufacturing of Aerospace parts, a vertically integrated manufacturing capability, a strong global presence, and expansion plans that could support future growth. On the other hand, a Weak financial track record, dependency on fewer customers, and premium valuation are some of the major key concerns.
As of December 3, the GMP of the Aequs IPO is ₹47, indicating a listing gain of around 34% to 38%. The verdict is that Short-term investors can consider applying for the IPO for listing gains due to attractive GMP and good market sentiment. Whereas Long-term investors must analyze the risks, like increasing working capital days and weak financial history, before subscribing.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
