Aequs IPO: 'Subscribe' Says DRChokesy — Check Issue And Other Key Details

Aequs' Rs 921.81-crore IPO, comprises of Rs 670-crore fresh Issue and Rs 251.81-crore offer-for-sale. The Bengaluru-based precision component manufacturer specialising in aerospace solutions has fixed the price band in the range of Rs 118 to Rs 124 per equity share..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..DRChoksey Report.Aequs Ltd. launched it's initial public offering today, December 03 and the offer will close for subscription on Dec. 05.The Bengaluru-based precision component manufacturer specialising in aerospace solutions has fixed the price band in the range of Rs 118 to Rs 124 per equity share.Aequs' Rs 921.81-crore IPO, comprises of Rs 670-crore fresh Issue and Rs 251.81-crore offer-for-sale.JM Financial Ltd. is the book-running lead manager, while the issue registrar is Kfin Technologies Ltd.Aequs shares will be listed on both the National Stock Exchange and the BSE on Dec. 10..Objects of the Issue Analysis of Proceeds Aequs plans to utilize the gross proceeds from the fresh issue for a combination of debt reduction, capital expenditure, and strategic initiatives..Risk Factors High Revenue Concentration The company’s heavy dependence on the Aerospace Segment (89.19% of revenue in FY25) and a few key customers makes it highly vulnerable to downturns in that industry or the loss of a major client. History of Losses and Negative Cash Flow The consistent net losses and the negative operating cash flow in FY24 raise significant concerns about the company’s financial sustainability and its unproven path to profitability. High Capital Expenditure Requirements The business is capital-intensive, requiring continuous and significant investment to maintain and upgrade machinery, which can strain financial resources and hinder free cash flow generation. Requirement-Based Contracts Customer contracts do not obligate them to place fixed orders, which introduces significant uncertainty in revenue forecasting and makes production planning and inventory management challenging. Execution Risk on Expansion The company’s future growth hinges on its ability to successfully utilize IPO proceeds for capacity expansion and inorganic growth, which carries inherent risks of delays, cost overruns, and failure to achieve projected returns. These risks are managed by the company’s leadership team, whose experience is a key factor in the investment decision..Click on the attachment to read the full report:.Aequs's Rs 921.81-Crore IPO Opens Today For Subscription— Should You Bid? Read Angel One's Report.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aequs IPO: 'Subscribe' Says DRChokesy — Check Issue And Other Key Details

Aequs launched it's initial public offering today, December 03 and the offer will close for subscription on Dec. 05.

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