Will it pass the Apple Test to join Apple’s list of suppliers?
Aequs Ltd. (AL), established in March 2000, manufactures aerospace components including engine systems, landing systems, cargo and interiors, structures, assemblies and precision turning. Its key global customers include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems, Safra and GKN Aerospace. Aerospace contributes nearly 90% of its Rs 925 cr. revenue in March 2025. The firm operates from Karnataka’s SEZ and also has facilities in France and the USA.
The balance 10% comes from its non-core consumer division—cookware, small appliances, outdoor toys, figurines and plastic components. This division has incurred losses of over Rs 120 cr. on revenue of Rs 600 cr. between April 2022 and Sept 2025, dragging overall performance.
Details and objects of the issue
Promoted by technocrat Aravind S. Melligeri, Aequs is backed by reputed institutional investors such as Amicus Capital, Amansa Capital, Steadview Capital, Catamaran Ventures and Sparta Group. Ahead of the IPO, the company raised Rs 144 cr. through a pre-IPO placement from SBI Funds Management, DSP India Fund and Think India Opportunities Fund.
The OFS will allow existing investors to encash part of their holdings, while the fresh issue proceeds will be utilised to repay borrowings of Aequs and its subsidiaries amounting to Rs 419 cr. and to fund capex of Aequs and AeroStructures Manufacturing India Pvt. Ltd. of Rs 68 cr.
The selling shareholders in the OFS include Amicus Capital, Raman Subramanian, Ravindra Mariwala, Vasundhara Dempo Family Private Trust, Girija Dempo Family and the promoters. Promoter holding will decline from 64.5% pre-IPO to 59.1% post-issue.
| Name of the Company | Aequs Ltd. | |
| Issue Open | 03-12-2025 | |
| Issue closes | 05-12-2025 | |
| Issue Size | Rs crore | |
| Fresh issue | 670 | |
| Offer for sale | 252 | |
| Face Value per share | Rs. | 10 |
| Upper issue price band | Rs. | 124 |
Financial Performance:
The launch of AL’s consumer division was executed in phases, beginning with its toy manufacturing business in 2016. In 2019, it promoted Aequs Consumer Products Pvt. Ltd. (ACPPL) as its core subsidiary to scale the consumer business. Commercial operations at ACPPL commenced in February 2021. Aequs further strengthened its consumer play by setting up integrated manufacturing parks for consumer durable goods at Hubballi, Karnataka, in 2022.
According to a report in The Economic Times, Apple has moved Aequs Group to the “trial stage” for onboarding into its India supply chain. If successful, Aequs would become the second Indian company—after Tata Electronics—to enter Apple’s supplier ecosystem.
The company’s consumer division continues to be a drag on the aerospace business. Revenue from the consumer division declined sharply by 33.5% from Rs 227 crore in fiscal 2023 to Rs 100 crore in fiscal 2025. Over the same period, the aerospace division delivered strong performance, recording a CAGR of 38.4% with higher EBITDA margins. The RHP also reports a significant impairment loss of Rs 48.3 crore on goodwill in the Consumer Products subsidiary. Diversification into non-aerospace segments such as Consumer and Plastics appears to have failed to generate the intended returns.
For the six months ended September 30, 2025, the aerospace division recorded 20% revenue growth to Rs 474 crore, while revenue from the consumer division remained flat. The aerospace business continues to subsidise the losses of the consumer division.
| Particulars | Sep-25 | Sep-24 | Mar-25 | Mar-24 | Mar-23 | CAGR 2025 over 2023 |
| EBIDTA – Company level | 84.6 | 57.8 | 108.0 | 145.4 | 63.1 | — |
| EBIDTA – Aerospace division | 117.0 | 87.3 | 159.8 | 174.4 | 83.4 | 38.4% |
| EBIDTA – Consumer division | -15.1 | -19.1 | -28.7 | -15.6 | -15.6 | — |
| Revenue – Company level | 537.0 | 459.0 | 925.0 | 965.0 | 812.0 | — |
| Revenue – Aerospace division | 473.8 | 394.7 | 824.6 | 757.0 | 585.0 | 18.7% |
| Revenue – Consumer division | 63.2 | 64.3 | 100.4 | 208.0 | 227.0 | -33.5% |
| % Revenue – Aerospace division | 88% | 86% | 89% | 78% | 72% | — |
| % Revenue – Consumer division | 12% | 14% | 11% | 22% | 28% | — |
| Particulars | Sep-25 | Sep-24 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) |
| Number of months | 6 | 6 | 12 | 12 | 12 | — |
| Revenue from operations | 537.0 | 459.0 | 925.0 | 965.0 | 812.0 | 6.7% |
| Other income | 28.4 | 16.5 | 34.6 | 23.2 | 28.4 | 10.4% |
| EBIDTA | 84.6 | 57.8 | 108.0 | 145.4 | 63.1 | — |
| Interest | 35.8 | 27.9 | 58.9 | 63.8 | 64.6 | — |
| Depreciation | 57.6 | 52.9 | 103.4 | 107.6 | 99.5 | — |
| Loss before tax | -8.8 | -23.0 | -54.3 | -26.0 | -101.0 | — |
| EBIDTA Margin – Aerospace | 24.7% | 22.1% | 19.4% | 23.0% | 14.2% | — |
| EBIDTA Margin – Consumer Division | -23.9% | -29.7% | -28.7% | -7.4% | -6.9% | — |
Peer Comparison:
In the aerospace components manufacturing space, Aequs is compared with three listed peers — Azad, PTC Industries, and Unimech Industries. Both Azad and Unimech have delivered strong returns over their IPO issue prices, while PTC’s rights issue (2:3 at par in Aug 2022) effectively acted as a mini bonus for its shareholders.
The peer group trades at exceptionally high valuation multiples, with P/E ratios ranging from around 56 times for Unimech Aerospace to over 400 times for PTC Industries.
Aequs’ consolidated revenue is nearly equal to the combined revenue of these three companies; however, it has reported net losses for the last three fiscal years. Its aerospace segment EBIDTA margin stands at 24.7%, significantly lower than the 35%+ margin levels reported by peers. Due to the negative contribution from its consumer division, Aequs’ company-level EBIDTA margin is lower at 15.7%.
| Particulars | Aequs | PTC Industries | Azad Engineering | Unimech |
| Income (Rs crore) | 959 | 308 | 457 | 243 |
| Earnings Per Share (Rs) | -2 | 41 | 15 | 18 |
| Face Value (Rs) | 10 | 10 | 2 | 5 |
| Price/Earning (P/E) Ratio | N/A (loss-making) | 436 | 114 | 56 |
| IPO Month | Nov-25 | — | Dec-23 | Dec-24 |
| Rights Issue | — | Aug-22 | — | — |
| IPO Price (Rs) | 10 | 10 | 524 | 785 |
| Current Market Price (Rs) | n.a | 18,030 | 1,695 | 980 |
| 12 Months High (Rs) | n.a | 18,600 | 1,928 | 1,524 |
| 12 Months Low (Rs) | n.a | 9,800 | 1,128 | 850 |
The unofficial and unreliable GMP market has reacted positively to the announcement of the IPO price. Aerospace component manufacturers typically command higher valuations. A turnaround in the consumer division or the possibility of becoming part of Apple’s supply chain is likely to act as a positive trigger for the scrip.
Disclaimer:
The writer is not a SEBI-registered analyst. He and his friends or relatives may or may not participate in the IPO. This article is intended purely for educational purposes. Investors are advised to consult their financial advisors before making any investment decisions. The grey market premium should be viewed only as an indicator and not as a reliable benchmark for listing performance.
Leave A Comment