Meesho vs Aequs vs Vidya Wires: Which IPO Stands Strong?

Three very different businesses are coming to the market at the same time - Meesho, a large online marketplace; Aequs, a precision aerospace parts maker; and Vidya Wires, a specialised copper and aluminium wire manufacturer. Their IPOs are open between 3-5 December, together aiming to raise more than ₹6,600 crore.

This blog breaks down each company’s business strength, financial health, risks, valuations, GMP trends (an unofficial indicator), and long-term potential. By the end, you will clearly understand how these IPOs compare, what drives their value, and what a normal investor should think about before choosing one.

Snapshot at a Glance

GMP Source: chittorgarh.com | Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Financial Health and Cash Flow

• Meesho: Positive free cash flow in the latest trailing twelve months. That is a strong sign for a growth platform. But the accounting net profit is still negative.
• Aequs: Three years of losses and high leverage. Debt cleanup via IPO proceeds is a key dependency. Cash cycle is long (working capital intensity).
• Vidya Wires: Profitability and ROE look strong, but operating cash flows are negative. That mismatch between accounting profit and cash is a red flag until it is improved.

Also Read: Where’s Meesho Losing Money? Breaking Down the Real Story Behind Its Losses

Capital Intensity and use of IPO funds

• Meesho: Mostly for tech, cloud, and marketing. Low capex but high recurring spends on marketing and tech payroll. That keeps flexibility.
• Aequs: Heavy capex for machines and paying down debt. Capital-intensive by nature.
• Vidya Wires: Fresh money to double capacity. Execution risk on plant build and ramp-up.

Are these IPOs Fairly Valued?

• Meesho is priced for future growth; it looks expensive on sales but acceptable for growth investors. Aequs is priced with high multiples that assume a sharp operational recovery. Vidya Wires looks cheaper versus peers on P/E AND EV/EBITDA but carries execution and cash risk.

Execution Risk and Management Quality

• Meesho: Proven ability to scale users and orders, but marketing dependence and high Cash on Delivery rates are operational risks.
• Aequs: Management experience in aerospace is a plus. The consumer business and past impairments raise execution concerns on diversification.
• Vidya Wires: Management has delivered high ROE; key risk is supply concentration for copper and fast payments to suppliers.

For detailed information, visit the respective official IPO pages of Meesho, Aequs, and Vidya Wires at INDmoney.

The GMP Trend

What is GMP?

GMP means grey market premium. It is an unofficial market sentiment indicator that shows how much the shares might fetch in the unregulated grey market before the official listing. GMP is not regulated; it is based on traders’ expectations, and it can move a lot in any direction within a short period of time.

• Meesho: ₹46 (41.44% higher than IPO price)
• Aequs: ₹46.5 (37.50% higher)
• Vidya Wires: ₹6 (11.54% higher)

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How to use GMP

Treat GMP like weather gossip. It suggests market excitement but is not a guarantee. Base decisions on fundamentals, cash flow, valuation, and your risk appetite rather than GMP alone.

Practical Checklist for Investors (6 things to watch after listing)

• Quarterly unit economics (for Meesho): contribution per order, marketing spend as a percent of revenue, and active buyer growth.
• Utilisation and margins (for Aequs): aerospace plant utilisation and EBITDA margin trends. Rising utilisation can be the main driver for earnings.
• Cash flow change (for Vidya Wires): operating cash flow should turn positive if the expansion is healthy.
• Debt levels and interest costs: track whether Aequs and Vidya Wires actually lower gross debt after the IPO.
• Raw material prices and supplier concentration: particularly important for Vidya Wires because copper drives costs.
• Management commentary on guidance: after the first two post-listing results, check for clear, measurable targets on margins, capex timelines, and working capital.

Final Verdict

• If you are conservative and prefer low volatility, these IPOs may swing a lot after listing. It’s safer to wait for a few quarterly results or choose companies that are already profitable with steady cash flows.
• If you are balanced and want a mix of safety and upside, Vidya Wires offers an attractive valuation compared with peers, but watch the cash flow trend and supplier dependence before investing.
• If you are aggressive and long-term, Meesho is the choice to consider for exposure to massive e-commerce scale. Expect big volatility and be ready to hold for multiple years while Meesho converts scale into steady profits.
• If you want a high-risk manufacturing bet on Make-in-India aerospace, Aequs can reward patient investors if debt reduction and utilisation improve.

For all live and upcoming IPOs, check the INDmoney IPO tracker.

Disclaimer

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation. This is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell or subscribe for securities. INDStocks SIP / Mini Save is a SIP feature that enables Customer(s) to save a fixed amount on a daily basis to invest in Indian stocks. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428. Refer to https://indstocks.com/pricing?type=indian-stocks; https://www.indstocks.com/page/indian-stocks-sip-terms-and-condition for further details.