Aequs shares gain 8% after listing at a 13% premium to the IPO price. Should you buy, sell or hold?

Shares of Aequs, which were trading at a 13% premium to its issue price of Rs 124 earlier in the day, extended gains to gain another 8%. The IPO, which opened on December 3 and closed on December 5, raised Rs 921.81 crore. This included a fresh outlay of Rs 670 crore and an offer for sale worth Rs 251.81 crore. Anchor investors contributed Rs 413.92 crore on December 2, subscribing to over 3.33 crore shares.

What should investors do?”Post-listing, sentiment around Aequs remains constructive. The company’s ability to scale its operations, deepen global customer relationships and capitalize on India’s rising prominence in aerospace manufacturing makes it a notable long-term candidate. However, investors should remain aware of key risks, including the sector’s cyclicality, dependence on global aerospace demand and capital-intensive execution,” said Shivani Nyati of Swastika Investmart.

For investors who have received an allocation, a balanced strategy is recommended. Consider taking a partial profit after the 13% listing gain to secure immediate returns, while holding the remaining shares for the medium to long term. The company’s strong fundamentals, favorable industry tailwinds and integrated capabilities that differentiate the company within the Indian aerospace ecosystem argue for continued upside potential.

SBI Securities said the company has embedded itself in the global commercial aircraft parts ecosystem, a sector with high barriers to entry. Both leading OEMs, Boeing and Airbus, have large aircraft order books, which should translate into robust demand for components. The domestic brokerage had given the stock a Subscribe for Long Term rating.

Prashanth Tapse, research analyst at Mehta Equities, says the allocated investors are holding on for the long term, citing Aequs’ global aerospace relationships, integrated manufacturing platform and alignment with India’s increasing aerospace localization push. Live quotation of Aequs shares: Aequs shares open 13% above issue price on BSE, NSE

Experts suggest the stock is priced significantly lower than peers on a price-to-book basis (~9.9x vs. peers at 15-20x). Aggressive investors can park some money for the long term to play on niche themes.

The company’s financial performance remains uneven. Revenue fell 3% in FY25 to Rs 959.21 crore, compared to Rs 988.30 crore in FY24. Losses widened to Rs 102.35 crore in FY25, compared to a loss of Rs 14.24 crore last year. For the half year ended September 2025, Aequs generated revenue of Rs 565.55 crore but reported a net loss of Rs 16.98 crore.

Analysts attribute the losses largely to high interest costs and capital intensity, which the company plans to address by paying down debt from IPO proceeds.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)