Aequs IPO opens Dec 3: Know key strengths, risks before you invest

Aequs IPO will be offered at a price band of ₹118 to ₹124 per share and a lot size of 120 shares

Aequs IPO: Aequs, an aerospace products manufacturer, is set to launch its inital public offering (IPO) on Wednesday, December 3, 2025. The public issue comprises a fresh issue of 54 million shares aggregating to ₹670 crore, and an offer for sale (OFS) with investors divesting up to 20.3 million shares worth ₹251.81 crore.

 

Aequs IPO will be offered at a price band of ₹118 to ₹124 per share. The minimum application size has been set at 120 shares per lot. The issue will remain open for subscription till Friday, December 5, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Wednesday, December 10, 2025.

 

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Kfin Technologies is the registrar for the issue. JM Financial, IIFL Capital Services, and Kotak Mahindra Capital are the book-running lead managers. 

 

According to the red herring prospectus (RHP), the company plans to utilise ₹433.2 crore from the net fresh issue proceeds for repayment or prepayment of certain outstanding borrowings availed by the company, and ₹64 crore for purchasing machinery and equipment. The remaining funds will be used for funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.   ALSO READ | Meesho IPO to unlock ₹1,020 crore bonanza for founders, early backers

Here are the key risks associated with investing in Aequs:

Heavy reliance on Aerospace segment: The company makes a significant portion of its net external revenue from the Aerospace segment (88 per cent/89 per cent for H1FY26/FY25 respectively) and thus, is heavily reliant on the performance of the global aerospace industry particularly in the US, France and India, which are its key markets. Hence, any decrease in demand of products within the Aerospace Segment or any development that makes the sale of products within the Aerospace segment less economically beneficial may adversely affect Aequs’ business.

 

Customer concentration: According to the RHP, the company's top 10 customers contributed 83 per cent and 89 per cent to the total revenue during H1FY26 and FY25. As of FY23 and FY24, the company had faced a decline in revenue from one of its largest customer groups, Hasbro, primarily due to a decrease in their overall volume of consumer products sold, which in turn led to a decrease in volume of products within the consumer segment. Thus any failure by the company to maintain relationship with these customer groups or any adverse changes affecting their financial condition may adversely affect the company's business. 

 

Regulatory risks: As a manufacturer serving both the Aerospace and Consumer segments, the company is required to adhere to the regulations and quality standards set by regulatory authorities in India, the US, France, and other countries to which it exports. Consequently, its manufacturing units and facilities are regularly subject to inspections and audits by these authorities. Any adverse findings from such inspections could negatively impact the company’s business operations and reputation, potentially leading to unfavorable business outcomes.

 

Capital-intensive business: The company requires significant capital expenditure to maintain or upgrade equipment and machinery across its existing manufacturing clusters and facilities. Any failure to secure adequate capital, may adversely affect the company's business, results of operations, and finanial condition.  ALSO READ | Wakefit Innovations to float IPO on December 8; eyes ₹1,400 crore

Key competitive strengths of Aequs:

Precision manufaturing capabilities: Aequs us the leading company within a single special economic zone in temrs of end-to-end manufacturing capabilites (machining, forging, surface treatment and assembly) for the Aerospace Segment in India, based on number of capabilities and approvals. It offers advanced manufacturing solutions across the precision manufacturing value-chain. 

 

Core aerospace expertise: The company claims that its core aerospace expertise, particularly in high-end alloys and 5-axis machining allows it to diversify into consumer electronics, plastics, and home appliances. By selectively outsourcing lower-value-added processes, the company focuses internal capacity on complex components with higher value potential, aligning with its strategy to move up the precision manufacturing value chain. 

 

High entry barrier global customers: Aequs has established long-standing relationships with high entry barrier global customers, such as Airbus, Collins Aerospace, Spirit Aerosystems Inc, Safran and Boeing in the Aerospace Segment, and Hasbro, Spinmaster, Wonderchef, and Tramontina in the Consumer Segment. Over the years, the company has established itself as Tier-1 supplier for such OEM customers.