The Aequs IPO has gained strong attention in the market as the company brings a rare combination of aerospace manufacturing expertise, vertically integrated capabilities, and multi-continental operations. With decades of engineering experience and a special economic zone (SEZ) dedicated to aerospace manufacturing, Aequs Ltd. represents one of India’s deepest precision-engineering ecosystems.
The company not only serves global aerospace OEMs but has also diversified into plastics, consumer electronics, and consumer durables. As India’s aerospace and defense ecosystem expands, the timing of the Aequs IPO becomes particularly meaningful for long-term investors.
Understanding Aequs Ltd.: A Vertically Integrated Aerospace Manufacturer
Aequs Ltd. has built a complete manufacturing value chain—from forging to machining, assembly, surface treatment, and system integration. This vertical integration is rare in the aerospace segment, enabling the company to deliver high-precision components with tighter control over timelines and quality.
Aerospace Product Portfolio
The company manufactures more than 5,000 aerospace components, including:
- Structures for aircraft frameworks
- Cargo and interior systems
- Landing gear systems
- Precision actuation systems
These parts are supplied to major global programs, including single-aisle aircraft platforms that constitute the highest production volume in the aviation industry.
Aequs IPO Details
The Aequs IPO opens on December 3, 2025, and closes on December 5, 2025, with allotment expected on December 8 and listing tentatively on December 10. It is a mainboard book-built issue worth ₹921.81 crore, comprising a fresh issue of ₹670 crore and an offer for sale worth ₹251.81 crore.
The price band for the Aequs IPO is ₹118 to ₹124 per share, and shares will list on both NSE and BSE.
Industry Outlook: Aerospace & Precision Manufacturing in India
India’s aerospace manufacturing industry is entering a high-growth phase driven by:
- Increasing outsourcing by global OEMs
- Production expansion in commercial aviation
- Rising defense procurement
- Strong engineering talent pool
- Favorable government policies for precision manufacturing
Aequs operates in a high-barrier industry where certification, long-term contracts, and multi-year production timelines create deep moats. Companies with vertically integrated capabilities—like Aequs—are well-positioned to benefit from the long-term upcycle.
Financial Performance Overview
Aequs has shown consistent revenue scale but continues to face profitability challenges. While income fluctuated between ₹840–988 crore over the last three financial years, the company remains loss-making due to high operational costs, expansion expenses, and interest burdens.
The company’s debt levels remain elevated, and both PAT and RoE are negative. However, EBITDA margins have shown improvement, reflecting operational efficiency across the manufacturing chain.
Cash flows reflect a business still in investment mode—with heavy outflows in capital expenditure and inflows through financing activities. Investors must understand that aerospace manufacturing is capex-heavy and requires long working capital cycles.
What the Company Plans to Do With the IPO Proceeds
A significant portion of the fresh issue will be used for debt reduction, which is critical for improving balance sheet stability. The rest will support:
1. Subsidiary-Level Debt Repayment
AeroStructures Manufacturing India, Aequs Engineered Plastics, and Aequs Consumer Products will receive capital infusion for reducing existing liabilities.
2. Funding New Machinery and Equipment
Around ₹64 crore will be utilized for procurement of advanced aerospace machining and precision-engineering equipment.
3. Strengthening Core Manufacturing Operations
Investment toward capacity expansion, operational optimization, and technology enhancement strengthens their position in high-value aerospace programs.
4. General Corporate Purposes
This covers working capital gaps, operational synergies, and strategic initiatives across the multi-continental ecosystem.
Competitive Positioning and Peers
Aequs competes with companies across aerospace and high-precision manufacturing. Listed peers include Azad Engineering, Amber Enterprises, Kaynes Technology, Dixon Technologies, and PTC Industries. While Aequs is smaller in scale compared to some peers, its integrated aerospace ecosystem sets it apart.
Aequs IPO Strengths
- Rare Vertical Integration in Aerospace: Few Indian companies offer an end-to-end precision manufacturing ecosystem across forging, machining, and assembly.
- Global Manufacturing Footprint: Operations spread across three continents help the company remain closer to key customers and supply chains.
- Long-Standing Supplier Relationships: Multi-year partnerships with leading aerospace OEMs provide stable order visibility.
- High Entry Barriers: Aerospace certifications take years, and once qualified, suppliers are rarely replaced.
- Diversified Product Portfolio: Thousands of mission-critical components across multiple categories.
Aequs IPO Weaknesses and Risks
- Heavy Dependence on Large Customers: A reduction in orders from major aerospace OEMs can significantly impact revenue.
- High Debt and Ongoing Losses: Continued losses and debt-led expansion create financial strain.
- Cyclical Aerospace Industry: Demand fluctuates based on aviation cycles, defense spending, and global events.
- Forex Exposure: Multi-country operations face currency and geopolitical risks.
- Execution Risks: Precision manufacturing requires strict certification and timelines.
Aequs IPO GMP
The Aequs IPO GMP (Grey Market Premium) as of December 2, 2025 stands at ₹44.5, indicating moderate listing expectations. GMP is unofficial and fluctuates daily; investors should treat it only as a sentiment indicator.
Should You Apply for the Aequs IPO?
The Aequs IPO offers exposure to a high-barrier, globally integrated aerospace manufacturer backed by strong engineering capabilities. However, it carries notable risks—high debt, losses, customer concentration, and sector cyclicality.
Investors with a long-term perspective and understanding of the aerospace industry may find Aequs promising. More conservative investors should weigh valuations and financial risks carefully before applying.
Final Thoughts
The Aequs IPO highlights India’s rising capability in precision aerospace manufacturing. Despite financial challenges, its integrated operations, strong OEM partnerships, and multi-continental presence position the company well for the long-term aerospace upcycle.
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