Aequs Limited Files Confidential DRHP for IPO, Plans for $200 million IPO

Manufacturing unit, Aequs Limited, has filed a confidential draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). It plans to go public to raise $200 million from the Initial Public Offering (IPO). 

The IPO will comprise a fresh issue and an Offer For Sale (OFS). Kotak Mahindra Capital, JM Financial and IIFL Capital have been appointed as the lead managers for the IPO.

The company intends to list its equity shares on BSE and NSE, and announce details such as price band, minimum bid lot, and book-running lead managers closer to the official IPO launch date.

Additionally, Aequs Limited is backed by global investors like 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.

About Aequs Limited

Aequs Limited is a diversified contract manufacturing entity with its head office in Belagavi, Karnataka, India. The company was founded in 2006 by Aravind Melligeri and has grown into a global player with units spread over India, France, and the United States of America.

Aequs Limited offers vertically integrated product solutions in three core sectors: Aerospace, Toys, and Consumer Durable Goods. Its aerospace unit provides end-to-end manufacturing services, such as forging, precision machining, surface treatment, and assembly of aerostructures, to major customers like Airbus, Boeing, Safran, and Honeywell.

In the consumer space, Aequs has made tremendous progress by setting up India's first global-size toy production cluster in Koppal and a separate consumer durable goods cluster in Hubballi, both of which are situated in Karnataka.

Company Financials

As of FY 2023–24, Aequs Limited’s revenue was around ₹970 crore (₹9.7 billion), a 25% year-on-year increase from the previous year's revenue of around ₹840.5 crore. However, the company incurred a net loss of ₹15.9 crore (₹159 million) for FY 2023–24, compared to last year's loss of ₹109.5 crore.

Aequs raised its first external round of funding in April 2023, raising ₹225 crore (about $27.5 million) led by Amicus Capital, to grow its manufacturing capacity.  It also invested in focused clusters, like the Koppal Toy Cluster and the Hubballi Durable Goods Cluster, to enhance its manufacturing ecosystems.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here.