Aequs is preparing to enter the stock market today after finalizing its allocation on Monday. The company’s initial public offering (IPO) garnered significant interest, with an overall subscription rate exceeding 104 times.
Among different investor categories, retail investors subscribed 81.03 times, while qualified institutional buyers (QIB) and non-institutional investors (NII) subscribed at rates of 122.93 times and 83.61 times, respectively. This strong demand reflects investors’ keen interest in the aerospace precision manufacturing firm.
Applicants can verify their allocation status through the KFin Technologies website or the Bombay Stock Exchange portal by providing the necessary application details. Aequs’ IPO, a book-built issue, raised Rs 921.81 crore, with a fresh issue of 5.40 crore shares worth Rs 670 crore and an offer for sale of 2.03 crore shares valued at Rs 251.81 crore.
The bidding period for the IPO was from December 3 to December 5, and allotment results were finalized on December 8. The IPO’s price band was set at Rs 124 per share, with applications accepted in lots of 120 shares, requiring a minimum investment of Rs 14,880 for retail investors. Additionally, the IPO included a reservation of up to 1,76,991 shares for employees at a discounted price of Rs 11 per share.
Despite the high subscription rates, the grey market premium (GMP) for Aequs has displayed a downward trend. As of the morning of December 10, the GMP was noted at Rs 24. With the issue price set at Rs 124, the estimated listing price is around Rs 148 per share, indicating a potential gain of approximately 19.35% per share on listing day. This figure serves as a reference point for investors regarding potential returns on the listing day, subject to market conditions.
Market analysts have offered insights into Aequs’ expected market debut. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, forecasted a listing range of 154–160, translating to a premium of 24–39% over the issue price. He emphasized the strong subscription interest and advanced aerospace precision manufacturing platform of Aequs.
Prasenjit Paul, Equity Research Analyst at Paul Asset & Fund Manager of 129 Wealth Fund, described Aequs as a unique entity operating in a sector with high entry barriers. He highlighted the company’s benefit from the ‘Make in India’ initiative and domestic capital expenditure push, suggesting that specialized manufacturing firms often enjoy premium valuations in the public markets.
It is recommended to consult with a qualified broker or financial advisor before making any investment decisions based on the views expressed by experts in this article.