Aequs IPO 2025: Financials, Business Model, Valuation, GMP & Final Take

Aequs quietly built one of India’s most advanced precision-manufacturing platforms - a vertically integrated SEZ ecosystem that supplies certified aerospace parts and engineered components to global OEMs. As it lists in December 2025, the IPO is as much about deleveraging and capacity expansion as it is about putting India on the global aerospace supply map. Below is a concise, RHP-backed breakdown of the offer, financials, use of proceeds, strengths, risks and what investors should consider.

IPO Snapshot

GMP Watch

The Grey Market Premium (GMP) is an unofficial indicator of investor interest before listing.

Note: GMP is unofficial and highly speculative; it should not be the sole basis for an investment decision.

IPO Timeline (Tentative)

Aequs: What the Company Does

Aequs is a precision engineering and manufacturing company with a unique two-pronged focus:

1. Aerospace Segment (Core Business)

This segment is the heart of Aequs, specializing in manufacturing high-precision machined and forged components for critical aircraft systems including engines, landing gears, structures, and interiors. The company supplies global OEMs and Tier-1 suppliers under long-term relationships.

2. Consumer Segment

Manufacturing of engineered plastics, consumer durables, and electronics components for global brands, leveraging high-volume plastic molding and tooling capabilities.

The company operates manufacturing clusters in India (Belagavi, Hubbali, and Koppal) and has international facilities in France and the US, forming a global footprint capable of meeting certification and quality requirements for aerospace customers.

How Aequs' Business Model Works

• Aerospace Manufacturing: Precision machining, forging, surface treatment and assembly for aircraft OEMs.
• Engineered Plastics & Consumer Products: Multi-cavity molding, finishing and component supply to global brands.
• Tooling & Industrialization: In-house tooling design and fabrication to shorten supplier lead-times.
• Integrated SEZ Ecosystem: Vertically integrated site enabling co-located processes and logistics efficiencies.
• Revenue Model: Contract manufacturing under long-term orders, repeat business and higher content-per-unit work.

Industry Context

Aequs is positioned to benefit from two important global trends:

• Global Aerospace Upcycle: Commercial aviation demand is recovering strongly, with large order backlogs at OEMs - creating predictable long-term demand for critical components.
• “China Plus One” Supply Diversification: OEMs are diversifying supply chains away from China. India’s cost structure and improving manufacturing quality make it a natural beneficiary - and Aequs’ integrated ecosystem aligns with this shift.

Financial Overview (Restated Consolidated)

All figures in ₹ crore as reported in the RHP and IPO materials.

Operating KPIs

Use of Proceeds (Fresh Issue)

Key Strengths

• Unique Integrated Ecosystem: India’s only large-scale end-to-end aerospace manufacturing SEZ combining forging, machining, surface treatment and assembly - a competitive moat.
• High Entry Barriers: Certifications, quality systems and long qualification cycles limit new entrants and increase customer stickiness.
• Strong Global Client Base: Long-standing relationships with Airbus, Boeing, Safran, Collins Aerospace and other Tier-1s.
• Diversified Capabilities: Aerospace, engineered plastics, tooling and consumer products reduce single-segment dependency.
• Debt Reduction Catalyst: Fresh proceeds prioritise borrowings repayment - a key step toward improved profitability.

Key Risks

• Net Losses: PAT negative across FY23–FY25; interest and depreciation pressures remain.
• Client & Sector Concentration: Aerospace represents ~86% of revenue; Top 10 customers account for ~88% - losing a major account would be material.
• Cyclicality: Aerospace is sensitive to global macro and geopolitical factors; downturns can reduce orders quickly.
• Capacity Utilisation: Some operations (U.S. facility and parts of the Consumer segment) have low utilisation, pressuring near-term margins.
• Execution Risk: Capex and subsidiary investments must be managed well to translate into profitable growth.

Conclusion

The Aequs IPO is not a play on immediate, high-margin profitability, but rather a long-term investment in India's highly specialized aerospace manufacturing ecosystem.

The company offers a unique, high-quality, and high-barrier-to-entry business model. The heavy debt reduction from the IPO proceeds is a crucial factor that provides a clear pathway for the company to achieve net profitability.

Verdict: The IPO is best suited for investors with a higher risk appetite and a long-term investment horizon (3–5 years) who are comfortable with the current financial volatility but believe in the structural tailwinds of the global aerospace industry.

FAQs

1. Why is Aequs making losses despite strong revenue?

Aequs’ negative PAT is mainly due to high interest costs from debt and significant depreciation/amortisation related to large capital expenditures. Operationally, EBITDA is positive - the IPO aims to reduce interest burden and improve net profitability.

2. Is there an employee discount in the Aequs IPO?

Yes. Eligible employees under the reserved quota will get a discount of ₹11 per share.

3. What is the minimum investment for a retail investor?

At the upper price band of ₹124 per share, the minimum retail investment (1 lot = 120 shares) is ₹14,880.

4. Who should consider this IPO?

Long-term investors with a higher risk appetite who believe in India’s aerospace manufacturing potential and can wait 3–5 years for potential returns.

5. What is the current GMP?

Current unofficial GMP is ₹46–₹47, implying a premium of ~37%–38% over the upper band.

6. What is the tentative listing date?

Tentative listing date is Wed, Dec 10, 2025 (subject to exchange confirmation).

Disclaimer: This article summarises the Aequs RHP and IPO details for educational purposes. It is not investment advice. Always read the final prospectus and consult a licensed financial adviser before investing.