Aequs IPO price band: Aeques Limited, a precision components manufacturer operating in the aerospace and consumer segments, has announced the price band for its upcoming initial public offering (IPO) at ₹118-124 per share.
Aequs IPO will hit the Indian stock market next week, on December 3, and will close on December 5. The company is set to make its stock market debut on December 12.
Meanwhile, the anchor book for the offer will open on Tuesday, December 2.
The IPO comprises a fresh issue of shares worth ₹670 crore, along with an Offer For Sale (OFS) of 2.03 crore shares valued at ₹252 crore by promoters and existing investors, taking the total issue size to ₹922 crore.
Amicus Capital, Melligeri Private Family Foundation, Raman Subramaniam, Ravindra Mariwala, Vasundhra Dempo Family Private Trust, Girija Dempo Family Private Trust and Aeques Manufacturing Investments are among the investors and promoters selling shareholders.
In Aequs IPO, not less than 75% of the offer is reserved for qualified institutional buyers (QIB), while not more than 15% is allocated to non-institutional investors (NII) and not more than 10% to retail investors. The company has also reserved a portion aggregating to ₹2 crore for eligible employees. The shares in the employee portion are being sold at a ₹11 discount to the IPO price.
Funds raised from the fresh issue would be used to repay loans taken by the company and its two subsidiaries—AeroStructures Manufacturing India and Aequs Consumer Products; to purchase machinery and equipment for the company and AeroStructures; and to support future growth through potential acquisitions, other strategic initiatives, and general corporate needs.
Earlier this month, Aequs raised around ₹144 crore from SBI Funds Management, DSP India Fund, and Think India Opportunities Fund as part of a pre-IPO funding round, thereby reducing the offer size.
About Aequs
Aequs primarily operates in the aerospace segment, but over the years, it has diversified into consumer electronics, plastics, and consumer durables.
Its consumer products portfolio includes cookware and small home appliances, while its plastics division manufactures outdoor toys, figurines, toy vehicles, and components for consumer electronics such as portable computers and smart devices.
The company’s key aerospace clients include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems Inc., Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca. In the consumer products segment, its major clients include Hasbro, Spinmaster, Wonderchef, and Tramontina.
Aequs operates manufacturing facilities in India, France, and the United States. In India, it runs three major manufacturing clusters located in Belagavi, Hubballi, and Koppal in Karnataka.
The book-running lead managers for the IPO are JM Financial Ltd., IIFL Capital Services Ltd., and Kotak Mahindra Capital Company Ltd.
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