Aequs Ltd, the contract manufacturing company specialising in aerospace components and consumer durable goods, delivered a strong listing on Wednesday.
According to Upstox, the stock debuted at ₹140 per share on both the NSE and BSE which is 12.9% higher than its issue price of ₹124. Aequs’ ₹921.81 crore IPO comprised a fresh issue of ₹670 crore and an offer for sale of ₹251.81 crore by promoters and existing investors.
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Strong debut, solid listing gains
A lot in the public issue consisted of 120 shares. Investors who received an allotment earned ₹16,800 per lot on listing.
The IPO attracted robust demand. As Upstox reported, the issue was subscribed 101.63 times, receiving bids for more than 427 crore shares against 4.2 crore shares on offer.
Breakdown of subscription:
QIBs: 120.92 times
NIIs: 80.62 times
Retail investors: 78.05 times
Before the IPO opened, Aequs raised ₹413.92 crore from anchor investors, including SBI MF, HDFC MF, ICICI Prudential MF, Axis MF, Motilal Oswal MF, BlackRock Global Funds, Steadview Capital and Citigroup.
Where will the company use the funds?
As per details cited by Upstox, proceeds from the fresh issue will be used to:
Repay borrowings of Aequs Ltd and subsidiaries AeroStructures Manufacturing India and Aequs Consumer Products.
Purchase new machinery and equipment.
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Support future acquisitions and strategic initiatives.
Meet general corporate requirements.
Aequs, while rooted in the aerospace manufacturing ecosystem, has diversified over the years into plastics, consumer electronics and consumer durable goods.
