Aequs sets ₹922 crore IPO, promises strategic growth

Belagavi, Karnataka–based Aequs, a diversified contract manufacturing company offering vertically integrated product solutions across the aerospace, toys, and consumer durable goods sectors, has announced a roughly ₹922 crore (₹9,220 million) initial public offering (IPO).

This includes a ₹670 crore (₹6,700 million) fresh issue and an offer for sale (OFS) of about ₹252 crore (₹2,520 million) at the upper end of the price band. The price band has been set at ₹118–124 (approximately $1.32–$1.39 per share at ₹89.40/USD) per equity share.

The anchor book is scheduled for Tuesday, December 2, 2025, while the issue will open to the public on Wednesday, December 3, 2025, and close on Friday, December 5, 2025.

Aequs has also completed a pre-IPO round that included a ₹144-crore (₹1,440 million) primary fundraise and a secondary placement of around ₹160 crore (₹1,600 million). This reflects strong investor confidence in the business Aequs has built.

Aequs intends to utilise the IPO proceeds for repayment or prepayment of certain outstanding borrowings, including the applicable prepayment penalties, availed by the company as well as three of its wholly owned subsidiaries, through investments made into these subsidiaries.

A portion of the issue will also be allocated towards capital expenditure, specifically for the purchase of machinery and equipment by the company and one of its wholly owned subsidiaries, again through an investment route.

Further, the company plans to use part of the proceeds to fund inorganic growth, including unidentified acquisitions and other strategic initiatives, in addition to meeting general corporate purposes. The company also expects the listing to enhance its brand visibility and establish a public market for its equity shares in India.

The selling shareholders in the offer include Amicus Capital Private Equity I LLP, Amicus Capital Partners India Fund II, the Melligeri Private Family Foundation, Amicus Capital Partners India Fund I, and Raman Subramanian.

The book-running lead managers for the issue are IIFL Capital, JM Financial, and Kotak Investment Banking.

Aequs, incorporated in 2000, now has the largest portfolio of aerospace products in India and operates across the European and North American markets, said Aravind Melligeri, Chairman & CEO of Aequs, during a press conference in Mumbai.

In the aerospace segment, the company manufactures a wide range of high–value–added components, including landing systems (124 SKUs) and engine systems (39 SKUs). Its portfolio also covers actuation systems (79 SKUs), interiors and cargo components (670 SKUs), structures (4,093 SKUs), turnings (17 SKUs) and assemblies (4 SKUs).

Aerospace components made by Aequs on display (Image: ITLN)

The company currently manufactures more than 5,000 aerospace parts, with a majority of them being single-source components. The company operates across 2.22 million square feet of manufacturing and operational space and has a workforce of over 2,700 employees, along with several indirect workers.

Melligeri said the company has built long-standing customer partnerships, including a relationship with Airbus that spans more than 15 years, and its client portfolio includes major global players such as Boeing, Spirit AeroSystems, Collins Aerospace, and Bombardier.

Aequs has three facilities: the Belagavi Manufacturing Cluster, the Koppal Manufacturing Cluster, and the Hubballi Manufacturing Cluster. In 2022, Melligeri said the company set up an additional ecosystem in Hubballi, Karnataka, specifically focused on consumer electronics, marking its entry into that vertical.

In consumer electronics, Aequs manufactures electronic components used in portable computers and smart devices. In the plastics segment, the company produces outdoor toys, vehicle toys, figurines, basic dolls and STEM toy sets. In consumer durables, Aequs also makes non-stick cookware, including pans and frying pans.