Aequs shares end at over 22 pc premium in market debut

New Delhi, Dec 10 (PTI) Shares of Aequs, a contract manufacturing firm specialising in consumer durable goods and aerospace parts, on Wednesday ended with a premium of 22.18 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. During the day, the scrip of the company appreciated by 26.61 per cent to hit a high of Rs 157 apiece on the stock exchanges.

It ended the day at Rs 151.50 apiece, rallying 22.18 per cent on the BSE.

On the NSE, it closed at Rs 150, up by 20.97 per cent.

At the end of the session, the company's market valuation stood at Rs 10,160.58 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, other strategic initiatives and 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.

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, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, 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. PTI HG HG SHW