Aequs Raises ₹144 Crore in Pre-IPO Funding: Cuts Fresh Issue Size to ₹576 Crore

Aequs, a leading contract manufacturing company catering to the consumer durables and aerospace sectors, has secured approximately ₹144 crore in a pre-IPO funding round. The investment came from SBI Funds Management, DSP India Fund, and Think India Opportunities Fund.

As a result of this pre-IPO placement, the company’s planned fresh issue size for its upcoming initial public offering (IPO) has been revised down to ₹576 crore, compared to the earlier proposed ₹720 crore.

JM Financial, IIFL Capital Services, and Kotak Mahindra Capital Company are serving as the book-running lead managers for the IPO.

Equity Allotment and Valuation

According to the company’s public disclosure on Tuesday, 11,615,713 equity shares, representing a 1.88% stake, were allotted to institutional investors. The allocation includes two entities managed by SBI Funds Management, and one each from DSP India Fund and Think Opportunities Master Fund.

The shares were priced at ₹123.97 per share, bringing the total proceeds to ₹144 crore. The placement was executed pursuant to the company’s Board resolution dated November 10, and in line with the Share Subscription Agreements (SSAs).

Revised IPO Structure

Aequs had filed its updated draft red herring prospectus (DRHP) with SEBI in September, proposing an IPO consisting of:

• A fresh issue of shares worth ₹720 crore (now reduced to ₹576 crore), and
• An Offer-for-Sale (OFS) of 3.17 crore equity shares by existing shareholders.

Utilisation of IPO Proceeds

The funds raised through the IPO are intended to support several strategic initiatives, including:

1. Debt repayment for Aequs and its subsidiaries — AeroStructures Manufacturing India and Aequs Consumer Products.
2. Procurement of new machinery and equipment for Aequs and AeroStructures Manufacturing India.
3. Future expansion, including potential acquisitions, strategic investments, and general corporate purposes.

Also Read: SEDEMAC Mechatronics Files DRHP with SEBI for ₹800-1,000 Crore IPO via Offer for Sale

About Aequs

Founded by Aravind Melligeri, a veteran in the aerospace industry and co-founder of QuEST Global Engineering, Aequs has built a diversified business portfolio. While aerospace remains its core focus, the company has expanded into consumer electronics, plastics, and durable goods manufacturing.

Aequs manufactures a range of products, including:

• Cookware and small home appliances under its consumer division.
• Outdoor toys, figurines, toy vehicles, and plastic components are used in consumer electronics such as laptops and smart devices.

Its clientele includes global leaders such as Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca in aerospace; and Hasbro, Spinmaster, Wonderchef, and Tramontina in consumer products.

Aequs operates manufacturing facilities across India, France, and the United States. In India, its industrial footprint spans three major clusters located in Belagavi, Hubballi, and Koppal in Karnataka.

The company is backed by reputed institutional investors, including Amicus Capital, Amansa Capital, Steadview Capital, Catamaran Ventures (the family office of Infosys founder N.R. Narayana Murthy), and Sparta Group.

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