Final Day! Aequs IPO GMP In Focus On Day 3 Of Subscription

Aequs Ltd., Bengaluru-based precision component manufacturer specialising in aerospace solutions, will conclude its initial public offering on Friday, December 5.

On Day 2, the mainboard IPO was subscribed 11.1 times, led by Retail Investors who subscribed their quota 32 times. NIIs subscribed 16.82 times, whereas QIB subscription stood at 0.73 times.

According to BSE data, investors have bid for 46,66,29,960 shares against the 4,20,26,913 on offer, so far on Friday.

As the subscription enters its final day, the grey market premium for the mainboard IPO has continued to attract interest from private market investors, who use this metric to predict the expected share price ahead of listing.

The grey market premium for the mainboard offer has shown marginal decline since last few days, after showing minute gains since the announcement of the IPO price band. Private market investors will continue to monitor trends to gauge market sentiment. Although one must note that the grey market is unregulated (not governed by authorities like SEBI) and speculative, it can fluctuate wildly. Therefore, investors use it as a sentiment gauge, but not as a guaranteed prediction.

The latest grey market premium (GMP) for the Aequs IPO was Rs 41 as of 7:30 a.m. on December 5. The latest GMP signals that the unlisted shares of Aequs Ltd. have been trading at Rs 165 per share in the private market, implying a premium of 33.06%, over the upper limit of the issue price of Rs 124 per share.

Note: GMP data sourced from InvestorGain.

GMP Disclaimer: The final listing price is determined by the official price discovery mechanism on the stock exchange on listing day, which is influenced by official subscription data, anchor investor interest, and overall market conditions, not just the GMP.

The Aequs IPO is a book-building issue worth Rs 921.81 crore. The IPO comprises a fresh issue of 5.4 crore shares, amounting to Rs 670 crore, and an offer-for-sale (OFS) of Rs 2.03 crore shares worth Rs 251.81 crore.

The price band for the IPO has been set at Rs 118 to Rs 124 per share. The lot size per application is 120 shares. Retail bidders are required to apply for at least one lot, amounting to a minimum investment of Rs 14,880 at the upper end of the price band. The minimum application size for small Non-Institutional Investors (NIIs) is 14 lots, aggregating to an investment of Rs 2,08,320. In comparison, the big NIIs need to apply for at least 68 lots, amounting to Rs 10,11,840.

JM Financial Ltd. is the book-running lead manager, while the issue registrar is Kfin Technologies Ltd.

The share allotment status for the Aequs IPO is scheduled to be finalised on Monday, December 8. Shares of Aequs Ltd. are expected to list on the NSE and BSE on Wednesday, December 10.

The company is expected to initiate refunds and share transfers to Demat accounts on December 9.

The company has proposed to use a major portion of the IPO funds for repayment of debts. A portion of the funds will also be used for capital expenditure for the purchase of machinery and equipment. The company will utilise remaining funds for inorganic growth and general corporate purposes.

Aequs Ltd. is a diversified precision component manufacturing company. It specialises in aerospace solutions. The company’s product portfolio includes components for engine systems, landing systems, cargo and interiors, structures, assemblies and turning for the aerospace clients. It has also expanded into consumer electronics, plastics and consumer durables in the last few years.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.