New Delhi: Aequs Limited (“Aequs”), the only precision component manufacturer operating within a single special economic zone in India to offer fully vertically integrated manufacturing capabilities in the Aerospace and Consumer Segments (Source: F&S Report), will raise fresh capital of up to Rs. 720 crores through an initial public offering (IPO).
Aequs has filed an updated draft red herring prospectus (UDRHP1) for a Fresh Issue comprising Equity Shares bearing face value of ₹ 10 each aggregating up to ₹ 720 crore and an Offer for Sale of up to 31,772,368 Equity Shares bearing face value of ₹ 10 each.
Aequs is led by Individual Promoter, Executive Chairman and Chief Executive Officer, Aravind Shivaputrappa Melligeri, who provides strategic vision and leadership to the Aequs group. Further, it also benefits from a seasoned management team with significant industry experience. Further, it is also backed by investors, Amicus Capital Private Equity I LLP, Amicus Capital Partners, Amansa Investments Ltd, Steadview Capital Mauritius Limited, Catamaran Ekam and Sparta Group LLC which collectively hold 25.54% of our pre-Offer Equity Share capital.
While Aequs primarily operates in the Aerospace Segment, over the years, it has expanded its product portfolio to include consumer electronics, plastics, and consumer durables for consumer clients. Its diverse 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 net proceeds of the Fresh Issue from the IPO are proposed to be utilised in the following manner: 1. Repayment and/ or prepayment, in full or in part, of certain outstanding borrowings and prepayment penalties, as applicable, availed by: (a) The Company; and (b) two of the company’s wholly-owned Subsidiaries, AeroStructures Manufacturing India Private Limited and Aequs Consumer Products Private Limited, through investment in such Subsidiaries; 2. Funding capital expenditure to be incurred on account of purchase of machinery and equipment by: (a) The Company; and (b) one of its wholly-owned Subsidiaries, AeroStructures Manufacturing India Private Limited, through investment in such Subsidiary; and 3. Funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.
Aequs commenced manufacturing aero-structure components and aero-engine components, for aerospace clients in their units in the Belagavi Manufacturing Cluster in 2009. Over the past 15 years, it has consistently grown business by developing and acquiring new manufacturing capabilities and diversifying product portfolio and customer base across the Aerospace Segment and Consumer Segment. 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.
Over the years, Aequs established itself as key global supplier for customers and key clients include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems Inc, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton and Sabca in the Aerospace Segment, and, Hasbro, Spinmaster, Wonderchef, and Tramontina in the Consumer Segment.
Aequs entered joint ventures to enhance capabilities to develop new products and deliver engineering solutions, by harnessing the complementary expertise of joint venture entities for production of complex and niche products required by customers. The company’s joint venture SQuAD Forging India Private Limited (“SQuAD”), has equipped the company with enhanced capabilities to, among others, forge small to medium-sized aerostructural parts for engines, landing gear and braking system components in aluminium, steel, titanium or nickel-based alloys.
Further, the company’s joint venture with Magellan Aerospace Limited, Canada formed in 2007, Aerospace Processing India Private Limited (“API”), has enabled it to provide innovative surface treatment solutions. The company’s joint venture with Tramontina, Aequs Cookware Private Limited, is equipped with technical capabilities to develop innovative consumer products.
With over two million square feet of manufacturing spaces across the Aerospace and Consumer segments, Aequs operates in three unique, engineering-led vertically integrated precision manufacturing “ecosystems” in North Karnataka, India. In addition, Aequs also operates two dedicated precision component manufacturing facilities for the Aerospace Segment in Cholet (France) and Paris, Texas (the US).
Across its three manufacturing ecosystems in India and two dedicated aerospace facilities outside India, Aequs had an aggregate capacity of 2,919,058 annual machining/molding hours for products within the Aerospace Segment and Consumer Segment, and over 200 computer numerical control (“CNC”) machines for Aerospace Segment and 161 molding machines deployed for consumer products, each as of March 31, 2025.
