Aerospace parts company Aequs had a successful initial public offering (IPO), listing at ₹140, a 13% price increase. Profit booking and retaining shares for possible long-term growth are recommended by experts as part of a balanced investing strategy.
Aequs Ltd., a contract manufacturing company that specializes in consumer durable products and aerospace parts, ended its debut trading day on Dalal Street with strong gains.
The shares closed at ₹151.30 per share, which is 22% more than the IPO price, after listing at a premium of 13% over the issue price of ₹124.
On the BSE, the company's market value was ₹10,146 crore. Analysts said that investors who received allotments might retain the stock for a long time after the strong start.
Mehta Equities Ltd.'s Senior VP (Research), Prashanth Tapse, stated that the IPO fell far short of their expectations, providing greater justification for stock accumulation and long-term holding. With high subscriber traction and investor interest in one of India's most cutting-edge, fully integrated aerospace precision-manufacturing systems, he thinks the stock will do well after listing.
Prashanth advised allotted investors to retain the company over the long term because to its excellent competitive positioning, global customer relationships, and alignment with India's growing aerospace manufacturing possibilities.
The attitude surrounding Aequs is still positive, according to Shivani Nyati, Head of Wealth at Swastika Investmart, despite the listing being moderate in comparison to upper-end expectations. She pointed out that the company is a noteworthy long-term prospect because of its capacity to expand operations, strengthen ties with customers around the world, and profit from India's growing significance in aerospace production.
She did, however, issue a warning to investors about important risks, such as sector cyclicality, reliance on worldwide aerospace demand, and capital-intensive execution.
Additionally, Shivani Nyati suggested that investors who were given an allocation take a balanced stance. In light of the company's solid fundamentals, industry tailwinds, and integrated capabilities that set it apart within India's aerospace ecosystem, she suggested booking partial profits after the 13% listing gain to secure immediate returns while holding the remaining quantity for the medium to long term.
Details about Aequs' IPO
A new issue of 5.40 crore equity shares worth ₹670 crore and an offer-for-sale (OFS) of 2.03 crore shares worth ₹251.81 crore, with the IPO price band fixed at ₹118 to ₹124 per share, made up the public issue, which raised ₹921.81 crore between Wednesday, December 3 and Friday, December 5.
The issue was subscribed a healthy 101.63 times overall, with the Non-Institutional Investors (NII) sector being fully booked and the retail investors' portion being booked 78.05 times. Similar enthusiasm was demonstrated by the Qualified Institutional Buyers (QIB) category, whose portion was subscribed 120.92 times.
About Aequs Since its founding in 2009, Aequs has expanded from producing engine and aero-structure components to building a worldwide renowned engineering-focused ecosystem that caters to the consumer and aerospace sectors.
For important aircraft programs like the A320, A350, B737, and B787, the firm produces more than 5,000 parts. Through acquisitions in France and North America, it has expanded globally. In addition to aircraft, it provides customers with consumer durables, plastics, and electronics.
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