Aequs IPO: Contract manufacturing firm Aequs announced on Tuesday that it has raised ₹414 crore from anchor investors ahead of its initial public offering (IPO).

The company allocated a total of 3.34 crore equity shares to 33 funds to the anchor investors at an allocation price of ₹124 per share, raising ₹413.92 crore.

The anchor book drew participation from both domestic and international institutional investors, such as SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Axis MF, Motilal Oswal MF, BlackRock Global Funds, Steadview Capital, and Citigroup, according to a circular uploaded on BSE’s website.

Aequs latest GMP

On Tuesday, December 2, the grey market premium (GMP) of the Aequs IPO stood at ₹45 per share. With the upper price band at ₹124 per share, the company’s shares are expected to be listed at ₹169, representing a premium of 36%, according to data from IPO India.

Aequs IPO details

Aequs IPO opens for subscription on Wednesday, December 3, and will close on Friday, December 5. The price band has been set at ₹118-124 per share for the issue. Aequs IPO size is ₹921.81 crore. The mainboard IPO comprises a mix of a fresh issue of 5.40 crore equity shares worth ₹670 crore and an offer-for-sale (OFS) component of 2.03 crore shares, amounting to ₹251.81 crore.

JM Financial Limited, IIFL Capital Services Limited, and Kotak Mahindra Capital Company Limited are the book-running lead managers to the issue.

The company has reserved 75% of the net offer for Qualified Institutional Buyers (QIBs), 10% for Retail Investors, and 15% for Non-Institutional Investors (NIIs).

The Aequs IPO allotment date is likely December 8, and the IPO listing date is scheduled for December 10. The shares will be listed on both the stock exchanges, BSE and NSE.

How will Aequs use the funds?

The funds from the fresh issue will be allocated to repaying loans taken by the company and its two subsidiaries, AeroStructures Manufacturing India and Aequs Consumer Products. They will also be used to purchase machinery and equipment for both the company and AeroStructures, as well as to support future growth through potential acquisitions, strategic initiatives, and meeting other corporate needs, Mint reported earlier.

Last month, Aequs raised approximately ₹144 crore from SBI Funds Management, DSP India Fund, and Think India Opportunities Fund as part of a pre-IPO funding round.

Aequs initially filed confidential draft papers with Sebi in June and secured approval in September to launch the IPO.

About Aequs

Aequs primarily operates within the aerospace sector; however, over time, it has expanded its product range to include consumer electronics, plastics, and consumer goods. Its consumer products include cookware and small home appliances, while its plastics range features outdoor toys, figurines, toy vehicles, and parts for consumer electronics, such as portable computers and smart devices.

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