Aequs IPO opens on December 3: Know the business model, strengths and risks ahead of issue launch

Aequs Ltd has one of the largest aerospace product portfolios in India, manufacturing over 5,000 aerospace components across engine systems, landing systems, cargo and interiors, structures and assemblies.

Aequs IPO details

Aequs IPO aims to raise ₹921.81 crore through its public issue, which is a 100% book-built and includes a fresh issue of over 5.4 crore shares worth ₹670 crore and offer-for-sale of more than 2 crore shares worth ₹251.8 crore.

The company has fixed the price band of the issue at ₹118 to ₹124 per share. The lot size, or the minimum bid quantity to apply for the issue is 120 shares. This equates to a minimum investment amount of ₹14,880 per lot at the upper end of the price band for retail investors.

Aequs IPO timeline

Aequs IPO will remain open for bidding from December 3 to December 5, 2025. After the bidding is closed, the allotment of shares is expected to be finalised on December 8.

Successful bidders can expect the shares to be credited to their demat accounts by December 9, with others receiving refunds on the same day. Aequs shares are scheduled to list on the BSE and NSE on December 10, 2025.

Aequs IPO financial snapshot:

Aequs IPO objective

• Capital expenditure: The company will utilise ₹64 crore towards capital expenditure for the purchase of machinery and equipment.
• Repayment of borrowings: The company will utilise ₹433.16 crore towards the repayment of certain outstanding borrowings.
• Inorganic growth and general corporate purposes: Part of the IPO proceeds will be used for general corporate purposes and inorganic growth through unidentified acquisitions.

Aequs IPO GMP

As per media reports, Aequs IPO grey market premium (GMP) is currently in the range of 33-34%. Strong early demand in the unofficial grey market shows the company’s IPO is likely to see huge interest once the IPO launches on December 3.

About the company

Aequs core busienss is aerospace component. The company has has strategically diversified into consumer electronics, plastics and consumer durables. For the six months ended September 30, 2025, the aerospace segment contributed 88.23% of net external revenue, and the consumer segment contributed 11.77% to revenue from operations.

The company operates through three integrated manufacturing ecosystems in India -Belagavi (precision aerospace), Hubballi (consumer electronics and durables), and Koppal (plastics). The company also maintains strategic overseas facilities in the U.S. (Texas) and France, supporting proximity to key OEM customers. Net external revenue from the aerospace segment in India accounted for 75.60% of revenue, France 11.66% and the USA 12.74% as of September 2025.

Its blue-chip global customer base includes Airbus, Boeing, Bombardier, Spirit Aerosystems, Safran, Collins Aerospace, Eaton, and Honeywell on the aerospace side, with Hasbro, Spinmaster, Wonderchef and Tramontina in the consumer segment. The company’s top five customers accounted for 66.36% of revenue from operations in the six months ended September 30, 2025, indicating high customer loyalty.

The company aims to move up the value chain and increase the manufacture of more critical and complex parts in the aerospace segment and enter into long-term master service agreements (“MSAs”) with its clients. Additionally, it aims to grow its portfolio of consumer products and expand its market share in related precision-driven sectors in India.

Strengths and opportunities

• Advanced vertically integrated manufacturing: The company is the leading precision manufacturer in a single SEZ in India with end-to-end capabilities covering machining, forging, surface treatment and assembly for global aerospace customers. It operates over 200 CNC machines, 161 moulding machines and has 2,919,058 machining/moulding hours of annual installed capacity as of Sep 30, 2025, enabling production of complex engine and landing system components at scale. Its capabilities are further validated by Airbus and Boeing approvals and Nadcap certifications.
• Global manufacturing presence: With facilities in India, the U.S. (Texas) and France (Cholet), the company is among the few Indian aerospace suppliers operating across three continents, enabling strategic proximity to major OEMs such as Boeing, Spirit, Safran and Airbus. As of September 2025, India contributed 75.60%, the U.S. 12.74%, and France 11.66% to aerospace segment revenue, reflecting diversified access to global aerospace demand.
• Large precision product portfolio: As of Sep 30, 2025, the company produced 5,000+ aerospace products across engine systems, landing gear, structures, cargo interiors and turning solutions. It had one of the largest portfolios of aerospace products in India, as of March 31, 2025.
• Long-standing global customer relationships: The company has an average 15-year relationship tenure with its top 3 customer groups and is a Tier-1 approved supplier to aerospace majors, including Airbus and Boeing. The top 5 customers contributed 66.36% of revenue as of September 2025 and 73.17% in FY25, indicating deep integration into OEM supply chains. It has received prestigious recognitions such as the Airbus Detailed Parts Partner (D2P) Award (6 times since 2016) and the Ramp-up Champion Award in 2024.

Risks and threats

• Dependence on aerospace revenue: The company derives 88.23% of net external revenue from the Aerospace segment in H1FY26, 89.19% in FY25 and 78.44% in FY24. Any downturn in the global aerospace cycle, driven by policy, travel demand, or OEM slowdown, could materially impact the business and cash flows.
• High customer concentration risk: Revenue contribution from the top 10 customers remains extremely concentrated at 82.51% in H1FY26, 88.57% in FY25 and 86.51% in FY24. Notably, revenue from Hasbro declined sharply from 17.63% in FY23 to 4.63% as of September 2025 due to a demand slowdown. Loss of any major OEM relationship may significantly impact the business operations and financial performance.
• No minimum order commitments: Contracts with major aerospace customers do not assure fixed volume orders, exposing the company to demand volatility and cancellation risk. Any mismatch between raw material procurement and the actual orders can adversely affect working capital efficiency.
• Under-utilised manufacturing capacity: The capacity utilisation of the consumer segment remains low at 17.07% in FY25 vs 30.46% in FY24. The U.S. aerospace capacity is also underutilised at 14.35% as of September 2025 and 14.47% in FY25.