Contract manufacturing firm Aequs sees robust investor interest across retail and NII segments, with a muted response from QIBs. The company eyes a ~$930 Mn valuation ahead of its December 10 market debut.
Aequs IPO Receives Overwhelming Response From Retail and NIIs
The Aequs IPO was oversubscribed 22X as of midday on December 5, 2025, drawing bids for 99.4 Cr shares against the 4.20 Cr shares available for subscription. The IPO, which comprises a fresh issue worth INR 670 Cr and an offer for sale (OFS) of 2.03 Cr shares, has garnered widespread investor interest in its final bidding phase.
Retail & NII Segments Steal the Show
Retail investors emerged as the most enthusiastic category, oversubscribing their quota by 52X, with bids for 39.8 Cr shares versus the 76.92 Lakh shares reserved for them.
Non-institutional investors (NIIs) also showed strong interest:
- Bids placed: 51.9 Cr shares
- Shares on offer: 1.15 Cr
- Oversubscription: 45X
Meanwhile, Aequs employees subscribed for 44.1 Lakh shares against a reserved quota of 1.9 Lakh shares, translating to a 23X oversubscription.
QIBs Display Cautious Optimism
In contrast, qualified institutional buyers (QIBs) showed relatively modest interest, subscribing to 10.3 Cr shares versus the 2.3 Cr shares allocated—an oversubscription of 4.6X. While still solid, this subdued demand contrasts sharply with the enthusiasm seen from retail and NII segments.
Anchor Investment Boosts Confidence Pre-IPO
On December 2, Aequs raised INR 413.9 Cr from anchor investors, securing participation from 33 investors. Notably, domestic mutual funds accounted for 57% of the anchor allocation, signaling strong institutional confidence ahead of the offering.
The IPO is priced in the range of INR 118 to INR 124 per share, implying a valuation of INR 8,316 Cr (about $930 Mn) at the upper end. Shares are scheduled to list on Indian stock exchanges on December 10.
Aequs: A Global Contract Manufacturing Force
Founded in 2006 by Aravind Melligeri, Aequs is a diversified contract manufacturer with a global footprint. It supplies precision components to aerospace giants like Airbus, Boeing, Safran, and Collins Aerospace. Beyond aerospace, the company has expanded into the consumer durables and toy manufacturing sectors.
Its manufacturing presence spans India, France, and the US, allowing it to serve clients across key global markets.
Financials Show Improved Efficiency
Aequs demonstrated notable operational improvements in H1 FY26:
- Consolidated net loss reduced by 76.2% to INR 17 Cr, down from INR 71.7 Cr YoY.
- Revenue rose 17% to INR 537.2 Cr, up from INR 458.9 Cr in H1 FY25.
These numbers suggest Aequs is making progress toward profitability, with a healthier cost structure and strong revenue growth supporting its public offering narrative.
