Aequs IPO Review: Price Band, Dates & Financials - Should You Invest?

Aequs Limited, a specialised contract manufacturer known for putting India on the global aerospace map, is set to launch its Initial Public Offering (IPO) tomorrow, December 3, 2025. The company aims to raise approximately Rs 922 crore through the book-built issue, marking a significant milestone as one of the few precision manufacturing plays from India's hinterland to hit Dalal Street.

For investors asking, "Should I invest in the Aequs IPO?", this comprehensive guide analyses the company's unique business model, financial health, key strengths, and potential risks.

Table of Contents

1. Aequs IPO: Key Details at a Glance
2. What Does Aequs Do?
3. Why is Aequs Going Public?
4. Is Aequs Profitable? A Financial Snapshot
5. Key Strengths and Potential Risks for Investors
6. The Final Verdict: Should You Subscribe to the IPO?
7. FAQs

Aequs IPO: Key Details at a Glance

The IPO has generated strong interest due to its unique positioning in the aerospace and precision manufacturing sectors.

What Does Aequs Do?

Founded in 2006 by Aravind Melligeri, Aequs operates a diversified contract manufacturing business with three distinct verticals. It is unique for its "ecosystem" approach, operating specialised manufacturing clusters in Belagavi (Aerospace), Koppal (Toys), and Hubballi (Consumer Durables).

Key Business Verticals:

• Aerospace (The Cash Cow): This is Aequs's flagship segment. It manufactures precision components and assemblies for global giants like Airbus , Boeing , Safran , and Collins Aerospace. This vertical is profitable and stable.

• Consumer (The Growth Engine): This segment includes two sub-verticals:

  • Toys: Manufactures toys for global brands like Hasbro and Spin Master.

  • Consumer Durables: Produces cookware and appliance components for brands like Wonderchef. This segment has seen heavy investment, leading to temporary losses, but is expected to drive future volume growth.

• Manufacturing Ecosystems: Aequs owns and operates India's first notified precision engineering SEZ in Belagavi, providing a structural cost advantage.

You can refer to the complete Aequs IPO details for updated price, timeline, and key financial insights on our dedicated page.

Why is Aequs Going Public?

The primary driver for the IPO is balance sheet deleveraging to support its next phase of growth.

How will the proceeds be used?

• Debt Reduction (Rs 433 crore): A substantial chunk of the fresh proceeds will repay outstanding borrowings. This will significantly reduce interest costs and improve the bottom line.

• Capex for Expansion (Rs 64 crore): Funds will be invested in new machinery to meet new orders, particularly in consumer electronics.

• Inorganic Growth: The remaining funds will support strategic acquisitions and general corporate purposes.

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Is Aequs Profitable? A Financial Snapshot

Aequs's financials present a mixed picture, reflecting a company in a heavy investment phase.

• Revenue Growth: Consolidated revenue reached Rs 924.6 crore in FY25, growing at a CAGR of 6.7%. In H1 FY26, revenue surged 17% YoY to Rs 537 crore.

• Profitability Struggles: The company is currently loss-making on a consolidated basis.

  • FY25 Net Loss: Rs 102.3 crore.

  • H1 FY26 Net Loss: Narrowed significantly to Rs 17 crore, signalling a potential turnaround.

• The Reason: While aerospace is profitable, the consumer division has dragged down margins due to high upfront capex and underutilised capacity (currently at ~22%). Management expects this to improve as utilisation ramps up.

• EBITDA: On an operational level, the company is profitable, with EBITDA rising 30.9% to Rs 108 crore in FY25.

Key Strengths and Potential Risks for Investors

Strengths (Pros):

• High Entry Barriers: Deep relationships with aerospace OEMs take years to build and certify.

• Integrated Campus: The Belagavi SEZ offers operational efficiencies hard to replicate.

• Turnaround Signs: Narrowing losses in H1 FY26 suggest the heavy capex cycle is nearing its end.

Risks (Cons):

• Loss-Making: The company is yet to report a net profit on a consolidated basis in recent fiscals.

• Client Concentration: A significant portion of revenue (~89%) comes from its top 10 clients.

For a clearer understanding through visuals, you may watch this Aequs IPO review video, where the business model, strengths, and key risks are discussed in depth.

The Final Verdict: Should You Subscribe to the IPO?

Aequs is a unique "Make in India" play offering exposure to the high-barrier aerospace sector and the mass-volume potential of consumer goods.

• For Long-Term Investors: The company is poised for a turnaround as its consumer division ramps up. It's a bet on specialised manufacturing capabilities.

• For Short-Term/Listing Gains: The Grey Market Premium (GMP) is currently hovering around 34%, indicating robust interest from investors willing to look past current losses.

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FAQs

1. What is the Aequs IPO date?
The IPO opens for subscription on December 3, 2025, and closes on December 5, 2025.

2. What is the price band for the Aequs IPO?
The price band is set at Rs 118 – Rs 124 per share.

3. Is Aequs a profitable company?
Aequs is currently loss-making on a consolidated basis due to heavy investments in its consumer division, but losses narrowed significantly in H1 FY26.

4. Who are the major clients of Aequs?
Major clients include global aerospace giants like Airbus, Boeing, and Safran, and toy brands like Hasbro.

5. Should I invest in the Aequs IPO?
The IPO is attractive for investors seeking exposure to the niche aerospace manufacturing sector. While the company is loss-making, its operational profitability and strong GMP make it a compelling opportunity.