Aequs’ Rs 922-cr IPO subscribed 3.42X

The initial share sale of Aequs Ltd, a contract manufacturing firm specialising in consumer durable goods and aerospace parts, sailed through within hours of the start of the bidding process on Wednesday and finally ended the day with 3.42 times subscription.

The company’s Rs 922-crore Initial Public Offering (IPO) received bids for 14,36,44,200 shares against 4,20,26,913 shares on offer, translating into 3.42 times subscription, as per NSE data.

Among investor categories, the Retail Individual Investors (RIIs) portion fetched 11.46 times subscription, while non-institutional investors received 3.40 times subscription. The Qualified Institutional Buyers (QIBs) quota got subscribed 66 per cent.

On Tuesday, Aequs said it has garnered Rs 414 crore from anchor investors. The initial share sale will conclude on December 5. The price band has been fixed at Rs 118-124 per share for the issue, valuing Aequs at over Rs 8,300 crore.

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 for general corporate needs.

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