SBI Funds, DSP, Think India invest Rs 144 crore in Aequs through pre-IPO placement

IPO-bound Aequs Ltd. has raised approximately Rs 144 crore through a pre-IPO placement by allotting 11,615,713 equity shares, representing 1.88% of the company’s pre-IPO offer share capital.

The shares were issued for Rs 123.97 per equity share to a consortium of marquee investors, including two entities of SBI Funds Management, one entity of DSP India Fund, and Think India Opportunities Master Fund.

Aequs is known as the only precision component manufacturer in India operating from a single special economic zone, offering fully vertically integrated manufacturing capabilities in the aerospace segment. Its diversified product portfolio also includes consumer electronics, plastics, and consumer durables.


The company had filed its Updated Draft Red Herring Prospectus (UDRHP) for an initial public offering consisting of a fresh issue of up to Rs 720 crore and an offer for sale (OFS) of up to 31,772,368 equity shares of face value Rs 10 each.

With the pre-IPO placement now completed, the fresh issue size will be reduced to around Rs 576 crore.

As part of the pre-IPO allotment:

• SBI Optimal Equity Fund – Long Term was allotted 29,84,593 equity shares (0.48%) for Rs 36.99 crore.
  
• SBI Emergent India Fund received 50,81,874 equity shares (0.82%) worth Rs 62.99 crore.
  
• DSP India Fund – India Long / Short Strategy Fund with Cash Management Option was allotted 32,26,587 shares (0.52%) valued at Rs 39.99 crore.
  
• Think India Opportunities Master Fund LP was issued 3,22,659 equity shares (0.05%) amounting to Rs 4 crore.
  

The equity shares issued through the pre-IPO route will be subject to lock-in. The company confirmed that none of the allottees are connected in any way to its subsidiaries, promoters, promoter group, directors, key managerial personnel, or group companies.

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

Aequs has attracted prominent global investors in the past, including Amicus Capital, Amansa Capital, Steadview Capital, Catamaran (the family office of Infosys founder N. R. Narayana Murthy), Sparta Group, and the investment office of Desh Deshpande.

The company’s marquee clientele in the aerospace segment includes Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems Inc., Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca. In the consumer segment, it serves brands such as Hasbro, Spinmaster, Wonderchef, and Tramontina.

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