Aequs, a leading integrated contract manufacturing company serving the aerospace and consumer durables sectors, has raised approximately ₹144 crore through a pre-IPO funding round. The investment came from marquee institutional investors including SBI Funds Management, DSP India Fund, and Think India Opportunities Fund.
Following this fundraise, Aequs has revised its IPO fresh issue size downward to ₹576 crore from the earlier proposed ₹720 crore, as disclosed in its latest filing. The company’s initial public offering (IPO) will also include an Offer-for-Sale (OFS) of 3.17 crore equity shares by existing shareholders.
JM Financial, IIFL Capital Services, and Kotak Mahindra Capital Company are acting as book-running lead managers for the issue.
Equity Allotment and Valuation
According to the company’s public disclosure, 11,615,713 equity shares — representing a 1.88% stake — were allotted to institutional investors at a price of ₹123.97 per share, generating total proceeds of ₹144 crore.
The allocation included two schemes managed by SBI Funds Management, along with one entity each from DSP India Fund and Think Opportunities Master Fund.
The pre-IPO placement was approved through a Board resolution dated November 10, 2025, and executed in accordance with the Share Subscription Agreements (SSAs).
Revised IPO Structure
Aequs had filed a revised draft red herring prospectus (DRHP) with SEBI in September 2025, outlining an IPO structure comprising:
- A fresh issue of shares worth ₹576 crore (revised from ₹720 crore), and
- An Offer-for-Sale (OFS) of 3.17 crore shares by existing shareholders.
Use of IPO Proceeds
The company plans to utilise the IPO proceeds for several strategic purposes, including:
- Debt repayment for Aequs and its subsidiaries — AeroStructures Manufacturing India and Aequs Consumer Products.
- Procurement of new machinery and equipment to enhance manufacturing capabilities.
- Expansion and potential acquisitions, as well as strategic investments and general corporate purposes.
About Aequs
Founded by Aravind Melligeri, co-founder of QuEST Global Engineering and a veteran in the aerospace sector, Aequs has evolved into a diversified contract manufacturing group with a strong global footprint.
The company’s operations span multiple verticals — aerospace, consumer products, plastics, and durable goods manufacturing — with products including cookware, small home appliances, outdoor toys, figurines, toy vehicles, and plastic components used in consumer electronics.
Its clientele features leading global names 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 in India, France, and the United States, with its Indian operations concentrated in three major clusters — Belagavi, Hubballi, and Koppal (Karnataka).
The company is backed by reputed investors, including Amicus Capital, Amansa Capital, Steadview Capital, Catamaran Ventures (the family office of Infosys founder N.R. Narayana Murthy), and Sparta Group.
Summary
Aequs’ ₹144 crore pre-IPO fundraise from leading institutional investors not only validates its strong business fundamentals but also optimizes its upcoming IPO structure. By trimming the fresh issue size to ₹576 crore, the company strengthens its capital base ahead of the listing while maintaining flexibility to pursue debt reduction, capacity expansion, and strategic growth initiatives across its global manufacturing ecosystem.
Disclaimer:
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