Shares of Aequs Ltd, a leading contract manufacturing firm specializing in consumer durable goods and aerospace parts, had a successful first trading day on the stock market, closing with a 22% gain over the initial public offering (IPO) price.
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., the listing was well below expectations, making it a good opportunity for investors to hold the stock for the long term. He believes that the company's strong competitive positioning, global customer relationships, and alignment with India's expanding aerospace manufacturing opportunities will drive its growth.
Shivani Nyati, Head of Wealth at Swastika Investmart, also expressed a positive view on the company's prospects, citing its ability to scale operations, deepen global customer relationships, and benefit from India's rising prominence in aerospace manufacturing. However, she cautioned investors to be mindful of key risks, including sector cyclicality and dependence on global aerospace demand.
Shivani Nyati advised investors who received an allotment to follow a balanced approach, booking partial profits after the 13% listing gain to secure immediate returns, while holding the remaining quantity for the medium to long term.
Aequs Ltd was founded in 2009 and has grown into a globally recognized engineering-focused ecosystem serving both the aerospace and consumer markets. The company makes over 5,000 components for major aircraft programs and supplies products to clients in consumer electronics, plastics, and consumer durables.
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