Aequs Limited, a diversified precision manufacturing player with a strong presence in aerospace, consumer products, and engineered plastics, is coming out with a ₹921.81 crore IPO. The company is known for operating India’s first aerospace-focused SEZ in Belagavi and supplying precision components to marquee global OEMs in the aviation and consumer electronics space. While the business has strong long-term potential, its financial track record has been inconsistent in recent years. In this detailed Aequs IPO Review, we cover issue details, company background, financials, GMP, valuations, peer comparison, competitive strengths, risk factors, and whether investors should subscribe or avoid this issue. This review follows the writing style of myinvestmentideas.com, helping investors make a practical and informed decision.
About Aequs Limited
Founded in 2000, Aequs Limited offers vertically integrated precision manufacturing solutions primarily for the global aerospace sector. Over the years, it expanded into consumer electronics, plastics, toys, cookware, and industrial products manufacturing.
As of September 30, 2025, the company produced over 5,000 aerospace components, catering to programs of Airbus (A220, A320, A330, A350), Boeing (B737, B777, B787), and other global platforms.
Key Product Segments
- Structures: Brackets, wing flap supports, floorboards, assemblies.
- Landing Systems: Landing gear, fittings, wheel parts, actuators.
- Interiors & Cargo: Seat components, trays, housings.
- Actuation Systems: Manifolds, pistons, foot mounts.
- Consumer Segment: Plastic toys, cookware, engineered plastics, and home appliances.
Aequs operates across multiple manufacturing clusters in Belagavi, Koppal, Hubballi (India), France, and the U.S., giving it a strong global footprint.
Competitive Strengths
1. Vertically Integrated Aerospace Manufacturing Ecosystem
Aequs is one of the few Indian companies offering a fully integrated aerospace manufacturing ecosystem, from machining to forging, assembly, processing, and logistics.
2. High Entry Barriers & Long-Term Customer Relationships
Aerospace manufacturing requires certifications, long approval cycles, and stringent quality standards. Aequs has long-standing relationships with top global OEMs, giving it recurring revenue visibility.
3. Strong Global Manufacturing Footprint
Presence across India, France, and the U.S. keeps the company closer to key customers and reduces dependency on single-region demand cycles.
4. Diversification Into Consistent Consumer Segments
The consumer division (plastics, toys, cookware) provides steady revenue, balancing the cyclical nature of aerospace.
Aequs IPO Issue Details
- IPO Opens: December 3, 2025
- IPO Closes: December 5, 2025
- Issue Size: ₹921.81 crore
- Fresh Issue: ₹670 crore
- OFS: ₹251.81 crore
- Price Band: ₹118 – ₹124 per share
- Face Value: ₹10
- Lot Size: 120 shares
- Retail Minimum Investment: ₹14,880
- Listing: NSE, BSE
Reservation
- QIBs: Not less than 75%
- NIIs: Not more than 15%
- Retail: Not more than 10%
Aequs IPO Financials
Consolidated Financial Performance (₹ in Cr)
| Period | Total Income | PAT | EBITDA | Net Worth | Total Borrowings |
|---|---|---|---|---|---|
| FY23 | 840.54 | -109.50 | 63.06 | 251.91 | 346.14 |
| FY24 | 988.30 | -14.24 | 145.51 | 807.17 | 291.88 |
| FY25 | 959.21 | -102.35 | 107.97 | 707.53 | 437.06 |
| H1 FY26 | 565.55 | -16.98 | 84.11 | 796.04 | 533.51 |
Observations
- Revenue fluctuated, with a 3% drop in FY25.
- PAT remains negative for multiple years.
- Debt has increased significantly to ₹533.51 crore.
- EBITDA margins are moderate at ~11%.
Aequs IPO Objects of the Issue
The company intends to use IPO proceeds for:
1. Debt Repayment – ₹433.17 Cr
A major portion will reduce high-cost borrowings, improving leverage.
2. Investment in Subsidiaries – ₹415.62 Cr
Funds will go into:
- AeroStructures Manufacturing India Pvt Ltd (₹174.82 Cr)
- Aequs Consumer Products Pvt Ltd (₹231.16 Cr)
- Engineered Plastics division (₹9.63 Cr)
3. Capex for Machinery – ₹64 Cr
Enhancing automation & machining capabilities.
4. Inorganic Growth & General Corporate Purposes
Future acquisitions and operational needs.
Valuation: P/E Ratio Compared to Peers
Aequs posted negative EPS, resulting in:
- Pre-IPO P/E: -74.71x
- Post-IPO P/E: -244.92x
Although P/E for loss-making companies is less meaningful, we compare industry peers:
Peer Comparison
| Peer | Segment | P/E |
|---|---|---|
| MTAR Technologies | Precision machining | 92x (Highest) |
| Dynamatic Technologies | Aerospace structures | 38x |
| Paras Defence | Defense manufacturing | 62x |
| Industry Average | — | 54x |
| Aequs Ltd | Aerospace & Consumer | Negative (Loss-making) |
Thus, Aequs is not comparable on P/E metrics until it turns profitable.
Reasons to Invest in Aequs IPO
1. Strong Position in Aerospace Manufacturing
Aequs is one of the largest aerospace precision engineering companies in India, with deep customer relationships.
2. Debt Reduction Will Strengthen Balance Sheet
Over ₹430 crore of debt repayment will reduce interest burden and improve cash flows.
3. Global Footprint Enhances Growth Potential
Presence across France and the U.S. provides access to long-term OEM programs and export markets.
4. Diversification Provides Stability
Consumer products division contributes steady revenues, reducing dependence on the volatile aerospace sector.
5. Long-Term Industry Tailwinds
Aerospace demand is expected to rise due to global fleet replacements, increasing outsourcing, and India’s manufacturing push.
Risk Factors of Aequs IPO
1. Inconsistent Financial Performance
The company has posted losses for several years, raising questions about sustainable profitability.
2. High Debt Levels
Even after IPO repayment, the company’s leverage remains high due to continuous capex needs.
3. Customer Concentration Risk
A significant portion of revenue depends on a few global aerospace customers.
4. Cyclical Nature of Aerospace Sector
Any global slowdown in aviation demand impacts order books.
5. Negative ROE and RONW
Key metrics such as ROE (-14.3%) and PAT margins (-11%) show operational inefficiencies.
How to Apply for Aequs IPO
You can apply using:
- UPI-based ASBA through broker apps (Zerodha, Groww, Upstox, AngelOne)
- Net banking ASBA through banks like HDFC, ICICI, SBI
- Select bidding category (Retail/HNI/Employee)
- Approve UPI mandate before 5 PM on Dec 5, 2025
Aequs IPO GMP (Grey Market Premium)
As of the latest available update, the Aequs IPO GMP is nil (data not yet active). GMP trends generally start 2–3 days before the opening date. We will update as soon as real-time data is available.
Aequs IPO Review – Should You Invest or Avoid?
Aequs is a strong long-term aerospace precision engineering company with global capabilities, but its financial performance remains volatile with consistent losses and rising debt. The IPO proceeds will significantly repair the balance sheet, but profitability concerns remain.
Short-Term Investors (Listing Gains):
🟠 Moderate to High Risk – Depends largely on GMP, QIB participation, and market sentiment.
Long-Term Investors:
🟡 Suitable only for high-risk investors who believe in India’s aerospace growth story and can wait 3–5 years.
Overall Conclusion:
❗ Aequs IPO is a Cautious Subscribe for Long-term Investors, and Avoid for Conservative Investors.
FAQs on Aequs IPO
1. What is the Aequs IPO issue size?
The total issue size is ₹921.81 crore, including fresh issue and OFS.
2. What is the Aequs IPO price band?
The price band is ₹118–₹124 per share.
3. Is Aequs a profitable company?
No, Aequs has reported losses in FY23, FY24, and FY25.
4. How much debt does the company have?
As of Sep 2025, the total borrowings stood at ₹533.51 crore.
5. What is the GMP for Aequs IPO?
GMP is currently unavailable, will be updated before the issue opens.
6. Should retail investors apply?
Retail investors with high risk appetite may consider. Conservative investors should avoid.
7. When will Aequs IPO list?
Tentative listing date is December 10, 2025.
Disclaimer: This article is for informational purposes only. IPO investments are subject to market risks. Please consult your financial advisor before investing.
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