Aequs Shares Debut with Premium

New Delhi, Dec 10 (PTI) Shares of Aequs, a contract manufacturing firm specialising in consumer durable goods and aerospace parts, on Wednesday listed with a premium of 13 per cent against the issue price of Rs 124.

The stock began trading at Rs 140 apiece on both the BSE and NSE, reflecting a gain of 12.90 per cent.

Later, the shares further rallied nearly 22 per cent to touch Rs 151.15 and Rs 151 apiece on bourses.

The company's market valuation stood at Rs 9,989.56 crore on the BSE.

The Rs 922-crore Initial Public Offering (IPO) of Aequs received 101.63 times subscription on the closing day of share sale on Friday.

It had a price band of Rs 118-124 per share for the issue.

The IPO has a fresh issue of shares worth Rs 670 crore, along with an Offer For Sale (OFS) of 2.03 crore shares valued at Rs 252 crore by promoters and existing investors, taking the total issue size to Rs 922 crore.

Funds raised from the fresh issue would be used for repaying loans taken by the company and its two subsidiaries -- AeroStructures Manufacturing India and Aequs Consumer Products, purchasing machinery and equipment for the company and AeroStructures, and supporting future growth through potential acquisitions, and other strategic initiatives.

A portion of proceeds will also be used for general corporate needs. Aequs primarily operates in the aerospace segment, but over the years, it has expanded its product portfolio to consumer electronics, plastics, and consumer durables.

Its consumer products include cookware and small home appliances, while its plastics offerings include outdoor toys, figurines, toy vehicles, and components for consumer electronics such as portable computers and smart devices.

The company is backed by prominent investors, including Amicus Capital, Amansa Capital, Steadview Capital, Catamaran -- the family office of Infosys founder N R Narayana Murthy -- and Sparta Group.

Its key clients are Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems Inc, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca in aerospace, and Hasbro, Spinmaster, Wonderchef, and Tramontina in consumer products.

It operates manufacturing facilities across India, France, and the US. In India, the company runs three manufacturing clusters in Belagavi, Hubballi, and Koppal in Karnataka.