Repayment and/or prepayment, in full or in part, of certain outstanding borrowings and prepayment penalties, as applicable, availed by the company & three of the wholly-owned Subsidiaries (₹ 433.17 Cr.)
Funding capital expenditure to be incurred on account of purchase of machinery and equipment (₹ 64 Cr.)
Funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.
Our View
Incorporated in 2000, Aequs Limited is the only precision component manufacturer operating within a single special economic zone in India to offer fully vertically integrated manufacturing capabilities in the Aerospace Segment. While primarily focused on Aerospace, the company has expanded to include consumer electronics, plastics, and consumer durables for its consumer clients.
Aequs’ advanced manufacturing capabilities enable entry into new business segments by leveraging existing capabilities. The company aims to improve margins through higher value manufacturing and operational efficiencies.
Risks to consider include significant dependence on the Aerospace sector, a concentrated manufacturing facility, customer concentration, regulatory risks, moderate leverage and high capital intensity, disruptions in raw material availability, reliance on contract labour and external service providers, and historically negative operating cash flows which may impact business results and cash flows.
On the financial front, the company has reported losses for the last three years due to the new household appliances segment. The aerospace business is heavily dependent on the global aviation sector’s performance. Aequs has demonstrated CAGR growth of 7% (revenue) & 30% (EBITDA) between FY23-25. Net Debt to Equity improved from 2.54x (FY23) to 0.99x (FY25). The issue is priced at a P/BV of 9.12 based on NAV of Rs. 13.6 as of September 30, 2025.
Given the comprehensive aerospace offerings, established client base, and potential in consumer electronics and durables, the company is projected to achieve substantial long-term growth. Aggressive investors with high risk tolerance may consider applying for the IPO.
Financial Snapshot & Valuation
Issue priced at P/BV: 9.12 (NAV Rs. 13.6 as at Sep 30, 2025)
Net Debt to Equity: improved from 2.54x (FY23) to 0.99x (FY25)
CAGR (FY23-25): Revenue ~7%, EBITDA ~30%
Reported losses in the last three years due to household appliances segment impact
Note: Company is capital intensive; valuation reflects long-term potential and client relationships rather than short-term profitability.
Key Risk Factors (Summary)
Significant dependence on the Aerospace sector
Concentrated manufacturing facility (single SEZ-based facility)
Customer concentration with a few large global OEMs
Regulatory risks and compliance exposures
Moderate leverage and high capital intensity
Potential disruptions in raw material supply and reliance on contract labour
Negative operating cash flows historically
Frequently Asked Questions (FAQs)
When does the Aequs IPO open and close?
The Aequs IPO opens on December 3, 2025 and closes on December 5, 2025.
What is the price band for the Aequs IPO?
The price band is ₹118 to ₹124 per equity share.
What is the lot size and minimum application amount?
The lot size is 120 shares. Minimum application amount is ₹14,880 (120 shares).
Who are Aequs' major clients?
Aequs serves major aerospace clients including Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems, Safran, GKN Aerospace, Honeywell and Eaton. Consumer clients include Hasbro, Spinmaster, Wonderchef, and Tramontina.
Is Aequs profitable?
The company reported losses over the last three years mainly due to the household appliances segment, although core aerospace capabilities and client relationships offer long-term potential.
What are the main risks I should know?
Main risks include dependence on the aerospace sector, concentrated manufacturing facility, customer concentration, regulatory exposure, moderate leverage and capital intensity, and historical negative operating cash flows.
Should I subscribe to this IPO?
Sushil Finance recommends a Long Term Subscribe for High Risk Investors. Aggressive investors with a long-term view may consider applying after evaluating the risks.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
June 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
5,655.45 |
9,592.13 |
9,883.04 |
8,405.39 |
| Total Expenditure |
4,814.39 |
8,512.44 |
8,427.94 |
7,774.83 |
| EBITDA |
841.06 |
1,079.69 |
1,455.10 |
630.56 |
| Loss before Tax |
(54.17) |
(940.79) |
(21.81) |
(1,026.77) |
| Loss after Tax |
(169.77) |
(1,023.46) |
(142.44) |
(1,094.95) |
| E.P.S. (Diluted) |
(0.30)* |
(1.80) |
(0.20) |
(2.44) |
| P/E (x) (Diluted) |
- |
- |
- |
- |
| ROCE (%) |
(1.81)* |
0.87% |
2.84% |
(3.72%) |
PRICE CHART (@ ₹ 124) (Retail Category)
| LOT SIZE |
| Amount |
| 120 |
14,880 |
| 240 |
29,760 |
| 360 |
44,640 |
| 480 |
59,520 |
| 600 |
74,400 |
| 720 |
89,280 |
| 840 |
104,160 |
| 960 |
119,040 |
| 1,080 |
133,920 |
| 1,200 |
148,800 |
| 1,320 |
163,680 |
| 1,440 |
178,560 |
| 1,560 |
193,440 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
1,680 |
208,320 |
| Big HNI |
8,160 |
1,011,840 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
8/12/2025 |
| Initiation of refunds/unblocking ASBA Fund |
9/12/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
9/12/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
10/12/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
Checkout More Blogs
