Aequs IPO to open for bidding on December 3; aims to raise Rs 670 cr from fresh issue

Precision component manufacturer Aequs Limited's initial public offering (IPO) will open for bidding on Wednesday, December 3 and close on Friday, December 5. The anchor bidding will open on Tuesday, December

The company plans to raise Rs 670 crore through the issue of fresh equity shares. The issue also has an offer for sale (OFS) component comprising more than 2.03 crore shares. Melligeri Private Family Foundation and Aequs Manufacturing Investments Private Limited are the promoter selling shareholders. Meanwhile, the investor selling shareholders include Amicus Capital Private Equity I LLP, Amicus Capital Partners India Fund I, Amicus Capital Partners India Fund I, Vasundhara Dempo Family Private Trust and Girija Dempo Family Private Trust.

Individual investors Ravindra Mariwala and Raman Subramanian will also offload a part of their stake through the OFS route.


The company is yet to announce its share price band for the IPO.

On September 18, Aequs received Sebi's nod to launch its public issue.

Aravind Shivaputrappa Melligeri is the promoter of the company. He is also the Executive Chairman and Chief Executive Officer of Aequs.

The company is backed by Amicus Capital Private Equity I LLP, Amicus Capital Partners, Amansa Investments Ltd, Steadview Capital Mauritius Limited, Catamaran Ekam and Sparta Group LLC. They collectively hold 25.54% of the company’s pre-offer equity share capital.

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Aequs IPO timeline

The tentative allotment in the Aequs IPO is expected on Monday, December 8, while refunds and share credits to demat accounts are expected on December 9. The stock is likely to list on Wednesday, December 10.

About Aequs

Aequs commenced manufacturing aero-structure components and aero-engine components for aerospace clients in their units in the Belagavi Manufacturing Cluster in 2009. It is a vertically integrated precision component manufacturer with capabilities in the aerospace and consumer segments. The company operates in three engineering-led, vertically-integrated precision manufacturing ecosystems, which enable it to produce complex products for global OEMs.

The company has also expanded its product portfolio to include consumer electronics, plastics, and consumer durables for consumer clients. Its consumer product portfolio includes consumer durables such as cookware, plastics such as outdoor toys, figurines, and components for consumer electronics such as portable computers and smart devices.

The company's clientele includes Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems Inc. Safran, GKN Aerospace, Mubea Aerostructures and Sabca in the Aerospace Segment; and Spinmaster, Wonderchef, and Tramontina in the consumer segment.

Aequs IPO net proceeds

The net proceeds of the fresh issue from the IPO are proposed to be utilised for repayment of the company’s outstanding borrowings and prepayment of penalties availed by two wholly-owned subsidiaries - AeroStructures Manufacturing India Private Limited and Aequs Consumer Products Private Limited. It will also utilise a part of the proceeds to fund capital expenditure for the purchase of machinery and equipment. It will also fund inorganic growth through unidentified acquisition, other strategic initiatives and general corporate purposes.

Over the past 15 years, it has consistently grown its business by developing and acquiring new manufacturing capabilities and diversifying its product portfolio and customer base across the aerospace and consumer segments. Aequs strategically expanded manufacturing operations in North America and France, through acquisitions in 2015 and 2016, respectively, which allowed it to acquire new capabilities in the Aerospace Segment, grow its footprint in North America and Europe, and expand its portfolio of products.

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IPO lead managers

JM Financial, IIFL Capital and Kotak Mahindra Capital are the Book Running Lead Managers to the issue.

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