Aequs Limited, a precision components and contract manufacturing company serving the aerospace and consumer goods sectors, has raised approximately INR 1.44 billion through a pre-initial public offering (IPO) placement. The company allotted 11,615,713 equity shares to four institutional investors at INR 123.97 per share, representing 1.88 percent of its pre-IPO offer share capital.
Following the pre-IPO placement, Aequs has revised the size of its fresh issue component to about INR 5.76 billion, down from the earlier planned INR 7.20 billion. The investment was led by two entities under SBI Funds Management, along with DSP India Fund and Think India Opportunities Master Fund. SBI Emergent India Fund received 5,081,874 equity shares, while SBI Optimal Equity Fund – Long Term was allotted 2,984,593 shares. DSP India Fund was allotted 3,226,587 shares, and Think India Opportunities Master Fund received 322,659 shares.
Aequs has already filed an updated draft red herring prospectus for its IPO, which comprises a fresh issue of up to INR 7.20 billion and an offer for sale of up to 31,772,368 equity shares with a face value of INR 10 each. The company’s book running lead managers for the public issue are JM Financial Limited, IIFL Capital Services Limited, and Kotak Mahindra Capital Company Limited.
The company intends to utilise the proceeds from the fresh issue for debt repayment, capital expenditure, strategic acquisitions, and general corporate purposes.
Aequs’ institutional investors prior to the pre-IPO round include Amicus Capital Private Equity I LLP, Amicus Capital Partners, Amansa Investments Limited, Steadview Capital Mauritius Limited, Catamaran Ekam, and Sparta Group LLC. These investors collectively hold 25.54 percent of the company’s pre-offer equity capital.
Founded in 2006 and headquartered in Belagavi, Karnataka, Aequs operates one of India’s first aerospace-focused precision engineering special economic zones (SEZs). The company has diversified into consumer goods, toys, and lifestyle manufacturing, serving both domestic and global clients.
Aequs’ key customers in the aerospace segment include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca. In the consumer segment, its clients include Hasbro, Spinmaster, Wonderchef, and Tramontina.
The pre-IPO funding is expected to strengthen Aequs’ capital position and streamline its IPO structure ahead of its planned listing.