Aequs Share Lists at 12.9% Premium: What Investors Should Do Now?

Aequs’ ₹921.81 crore IPO has made its market debut after a three‑day bookbuild at a price band of ₹118‑₹124 per share. The stock listed at ₹140 on NSE, about 12.9% above the IPO price of ₹124, and touched an intraday high of ₹151 before cooling off. The listing shows interest in India’s “Make in India” aerospace story, but also reflects that a big part of the future turnaround is already priced in. This blog breaks down first‑day trends, updated valuation, and a guide to help investors make an informed decision.

Key Facts and First-Day Trends

• IPO Price: ₹124 per share
• Listing Price: ₹140 per share (12.9% above issue price on NSE)
• Market Capitalization (at listing): ~₹9,400 crore
• Track the live share price of Aequs here.

Post-IPO Valuation Check

At the IPO price, Aequs had an EV/EBITDA of about 54.1 times and a price to sales (P/S) of about 9 times based on FY25 numbers, meaning investors pay ₹54 for every ₹1 of operating profit and ₹9 for every ₹1 of revenue.

With the stock listing 12.9% above the IPO price and hitting an intraday high of ₹151, the effective valuation band on listing day moves even higher than the already rich 54x EV/EBITDA and 9x P/S range, without any change in fundamentals on day one.

The company still has no meaningful price to earnings or P/E (price‑to‑earnings) ratio because it reported a net loss of about ₹102 crore in FY25, so standard profit‑based valuation remains tricky and investors must rely more on revenue and operating profit multiples.

Versus peers like Azad Engineering, Unimech Aerospace, Amber, Kaynes, Dixon, and PTC, Aequs now sits at revenue and EV/EBITDA multiples that are closer to or above some profitable names, even though Aequs has weaker margins, negative return on net worth, and a slower cash cycle.

In simple words, the first‑day move suggests the market is still paying up for what Aequs could become in three to five years if utilisation, margins and cash flows improve, rather than giving a safety discount for current losses and high leverage.

Also Read: All You Need to Know about Aequs’ ₹922 Cr Public Listing

Should You Hold or Sell Now?

• Short‑term trader: A 12.9% listing premium with a day range of ₹140 to ₹151 suggests active intraday interest; short‑term traders may focus on volatility around results, news flow, and upcoming lock‑in phases instead of treating day‑one gains as a one‑way move.​
• Medium‑term investor (1‑3 years): The key swing factors will be how fast debt reduces, whether aerospace margins hold above mid‑teens, and if the loss‑making consumer segment stops dragging; medium‑term holders may weigh holding only if they are comfortable with high valuation and earnings risk.
• Long‑term investor (5‑7 years): The integrated aerospace SEZ, strong OEM relationships, and low utilisation mean real upside if global aircraft demand stays strong and execution is disciplined, but this suits patient investors who can handle years of volatile profits and are okay with slow cash cycles.
• Balanced/partial profit approach: Investors who entered purely for listing gains may consider gradually taking back their original capital when liquidity is strong, while leaving a smaller “house money” exposure to participate in any long‑term aerospace upside, instead of an all‑or‑nothing decision.

What Investors Should Track Now

• Quarterly results: Watch revenue growth in aerospace, EBITDA margin trends, and whether net losses narrow steadily without relying only on one‑off items; the story needs consistent operating improvement, not just accounting clean‑ups.
• Debt and cash flow: Track how much of the planned ₹433.17 crore fresh issue allocation actually reduces debt, how interest costs move, and whether the 253‑day cash conversion cycle starts shortening through better collections and inventory control.
• Anchor / pre‑IPO lock‑in expiry: Around typical lock‑in expiry dates, some early investors and funds often sell 5‑15% of their holdings, which can cause short‑term price pressure even if business fundamentals are unchanged, so volumes and delivery data will matter.
• Margin and utilisation: Rising utilisation from the current 41.77% levels, a higher share of complex parts, and better consumer segment performance are key to closing the gap with peers like Azad and Unimech that enjoy 30% plus EBITDA margins.
• Sector drivers and raw materials: Global aircraft order execution pace, “China+1” outsourcing, and volatility in steel, titanium, and alloy prices will impact orders and cost; any global shock can hit exports and utilisation.
• Management execution and communication: Keep an eye on how management updates the market on capital allocation, possible inorganic moves, and the roadmap for fixing the consumer business, since a clear, consistent narrative often supports valuations during tough quarters.

For complete information, visit Aequs’ official IPO page here.

Final Take

Aequs’ listing at a mid‑teens premium signals that the market still likes the Make in India aerospace theme, but is also already paying a high price for a business that is loss‑making, capital‑intensive, and yet to prove strong cash generation. The real test from here is less about day‑one pop and more about whether management can steadily improve margins, cut debt, and shorten the cash cycle over the next 8‑12 quarters so that today’s rich valuation does not feel stretched in hindsight.

For most investors, the practical next step is to build a simple tracking checklist for each quarterly result covering revenue growth, aerospace vs consumer mix, EBITDA margin, net debt, and working capital days, and then decide calmly whether the numbers are moving towards the long‑term story that the IPO and listing price have already priced in.

For more IPOs, check INDmoney’s IPO tracker here.

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