Aequs Limited Files Confidential Papers for $200 Million IPO with SEBI

Aequs Limited, a leading contract manufacturing company, has taken its first formal step toward going public by filing a confidential draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise $200 million (approx. ₹1,660 crore) through an Initial Public Offering (IPO).

IPO Structure and Advisors

The upcoming IPO will include both a fresh issue of shares and an Offer for Sale (OFS) by existing shareholders. The company has appointed Kotak Mahindra Capital, JM Financial, and IIFL Capital as the lead managers for the issue. Aequs intends to list its shares on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

Details regarding the price band, minimum bid lot, and final IPO launch date will be announced closer to the offering.

Backed by Global Investors

Aequs is supported by a strong lineup of global investors, including:

• Amicus Capital
• Amansa Capital
• Steadview Capital
• Catamaran Ventures (the family office of Infosys founder N.R. Narayana Murthy)
• Sparta Group
• Desh Deshpande’s investment office

These strategic backers have helped position Aequs as a major player in India’s growing manufacturing sector.

About Aequs Limited

Founded in 2006 by Aravind Melligeri, Aequs Limited is headquartered in Belagavi, Karnataka. Over the years, the company has expanded its operations to India, France, and the United States, offering vertically integrated manufacturing services.

Aequs operates in three key sectors:

• Aerospace: Providing complete manufacturing services including forging, precision machining, surface treatment, and assembly of aircraft structures for global giants like Airbus, Boeing, Safran, and Honeywell.
• Toys: Aequs has set up India’s first global-scale toy manufacturing cluster in Koppal, Karnataka, aiming to reduce India’s dependence on toy imports.
• Consumer Durable Goods: A dedicated manufacturing cluster in Hubballi, Karnataka, focuses on producing consumer electronics and appliances.

Company Financials

In the financial year 2023–24, Aequs reported a revenue of ₹970 crore, up 25% from ₹840.5 crore in FY 2022–23. However, the company recorded a net loss of ₹15.9 crore, an improvement from the ₹109.5 crore loss in the previous year.

In April 2023, Aequs raised ₹225 crore (around $27.5 million) in its first external funding round, led by Amicus Capital, to expand its manufacturing footprint. This capital helped fuel the development of focused manufacturing ecosystems like the Koppal Toy Cluster and the Hubballi Consumer Durable Goods Cluster.

What’s Next?

With the IPO plans moving forward, Aequs is expected to become one of the prominent contract manufacturing firms to hit the Indian stock markets. The move not only reflects the company’s growth ambitions but also underscores the rising investor interest in India’s Make-in-India story and local manufacturing capabilities.

The market will now be watching for the company’s DRHP to be made public and for further details as Aequs heads toward its listing.