Aequs IPO Review – Should You Apply or Avoid?
The Aequs IPO is creating strong buzz in the primary market as one of the most anticipated upcoming IPOs in India 2025. With a solid presence in aerospace manufacturing and precision engineering, Aequs caters to global giants and benefits from growing defence and aviation demand. Investors are now keen to know whether they should apply or avoid Aequs IPO, especially after an impressive grey market premium (GMP).
Aequs IPO Details
| Detail | Information |
| IPO Opening Date | 3 December 2025 |
| IPO Closing Date | 5 December 2025 |
| IPO Allotment Date | 8 December 2025 |
| IPO Listing Date | 10 December 2025 |
| IPO Price Band | ₹124 per share |
| Lot Size | 120 shares |
| Minimum Investment (Retail) | ₹14,880 (1 lot) |
| Maximum Investment (Retail) | ₹1,93,440(13 lots) |
| Total Issue Size | ₹921.81 crore |
| Fresh Issue | ₹670 crore |
| Offer for Sale (OFS) | ₹251.81 crore |
About the Company
Aequs is a leading precision engineering and aerospace manufacturing company serving global defence and aviation companies. The company operates across aerospace machining, forging, moulding, assembly, and supply chain solutions, catering to both domestic and international clients.
Aequs is known for its integrated aerospace ecosystem located in Belagavi, Karnataka, considered one of India’s most advanced aerospace manufacturing hubs. It is involved in machining complex components, supplying structural parts, and supporting OEMs in end-to-end manufacturing.
Target Market:
- Aerospace OEMs
- Defence manufacturers
- Global engineering and precision component buyers
Key Management
Aravind Melligeri – Chairman & CEO
- Experienced leadership team with decades in aerospace engineering, technology integration, and global supply chain management.
Financials Snapshot
Aequs has reported steady growth due to rising demand in aerospace and defence sectors.
Revenue & Profit Trend (Approx.)
- FY22: Moderate revenue, marginal profit
- FY23: Revenue growth driven by recovery in aviation
- FY24: Strong order book and expansion in defence component manufacturing
(Exact audited numbers will appear in the RHP.)
Overall, Aequs demonstrates consistent revenue expansion and improving margins as global aerospace demand returns to pre-pandemic levels.
Objectives of the Issue
The company aims to utilise IPO proceeds for:
- Expanding manufacturing capacity
- Reducing debt and strengthening the balance sheet
- Funding working capital
- Upgrading technology and automation
- Supporting long-term growth strategy in aerospace and defence
Industry / Sector Outlook
India’s aerospace and defence sector is experiencing a multi-year growth cycle, driven by:
- Government push for Make in India
- Increasing defence indigenisation
- Rising global sourcing from India
- Private sector involvement in defence manufacturing
- Strong recovery in commercial aviation
This presents a favourable long-run opportunity for companies like Aequs.
Strengths
Strong presence in aerospace precision engineering
- Integrated manufacturing ecosystem, reducing production costs
Long-term relationships with global OEMs
- Sector tailwinds from defence and aviation growth
Risks / Challenges
High capital intensity may strain cash flows
- Customer concentration risk as aerospace OEMs dominate revenue
Regulatory and export compliance requirements
- Global demand fluctuations in aerospace cycles
Peer Comparison / Competitors
Major competitors include:
- Dynamatic Technologies
- Bharat Forge (aerospace division)
- Tata Aerospace & Defence
- L&T Defence
Aequs differentiates itself through a fully integrated aerospace ecosystem and specialised machining capabilities.
Valuation
At an IPO price band of ₹124, the valuation appears moderate considering the company’s niche capabilities, sector growth, and improving margins. The current GMP suggests healthy listing-day sentiment.
Conclusion
The Aequs IPO offers exposure to India’s fast-growing aerospace manufacturing sector. The company has strong capabilities, global clients, and industry tailwinds. However, investors should also consider risks related to capital intensity and sector cyclicality.
Final Recommendation: Apply or Avoid?
Verdict: Apply for Long-Term Investors
Aequs offers a unique opportunity to participate in the aerospace manufacturing boom in India. With a reasonable price band and solid fundamentals, long-term investors may consider applying. Short-term listing gains may be moderate based on the current GMP.
You may also like
