Aequs, a relatively little-known precision-manufacturing firm, has launched a ₹922 crore initial public offering — timed to take advantage of what analysts say is a growing $3 billion-plus global demand for aerospace components.
The company runs a “vertically integrated” manufacturing campus in Karnataka’s SEZ, where it handles everything from machining, forging and surface treatment to final assembly. This full-stack setup appeals to global original equipment manufacturers (OEMs) — which prefer consolidated, reliable suppliers over a fragmented vendor base.
What stands out for Aequs is its exposure to both aerospace and a consumer-segment business (electronics, appliances, plastics), giving it diversified revenue potential.
The IPO comprises a fresh equity issue of ₹670 crore plus an Offer-for-Sale (OFS) of ~2.03 crore shares by existing shareholders. Company plans to use part of the proceeds to pare down ₹433 crore of debt — a move that could improve its financial health and margins in the coming years.
Despite these positives, some analysts flag valuation and profitability concerns. Based on FY25 results, Aequs appears “full-valued” — trading at ~8.9× sales and a high EV/EBITDA — relative to peers. The challenge: while its aerospace business reported decent margins (~19 % EBITDA), the overall consolidated numbers remain muted due to losses in its consumer-electronic segment.
Still, many believe that Aequs’s long-term story is robust. With global aerospace firms ramping up production (aircraft makers such as Airbus and Boeing seeking to diversify supply chains beyond China), suppliers with reliability, scale, and integrated capabilities may benefit disproportionately.
In short: Aequs’s IPO is not about quick listing-gains but about riding structural shifts in aerospace manufacturing. For investors with patience and a long-term view, it presents a niche, industrial-supply-chain play with potential — but execution, margin improvement, and order-book stability will be key to whether the optimism holds.
