Aequs Raises Rs 144 Crore in Pre-IPO Round from SBI Funds, DSP, and Think India Opportunities Fund

New Delhi, November 11: Aequs Ltd has raised Rs 144 crore in a pre-IPO funding round. The money has been raised from marquee institutional investors. This includes SBI Funds Management, DSP India Fund, and Think India Opportunities Fund. Aequs Ltd is a contract manufacturing major. It caters to the consumer durables and aerospace sectors.

Aequs Fresh Issue Size Reduced to Rs 576 Crore

Initially, Aequs Ltd’s IPO was set at Rs 720 crore. But after the pre-IPO placement, the size of the fresh issue has been revised. Now it will be around Rs 576 crore. As per the regulatory filing, the company had allotted 1.16 crore equity shares in the pre-IPO placement. The shares were priced at Rs 123.97 per share. This represents a 1.88% stake in the company.

The allotment was made to two entities of SBI Funds Management, one entity of DSP India Fund, and Think Opportunities Master Fund. The placement was approved through a board resolution dated November 10. It was executed in accordance with the Share Subscription Agreements (SSAs).

Aequs IPO Structure and Fund Utilisation

The company filed updated draft papers with SEBI in September. As per the regulator filing, the IPO fresh issue has now been revised to Rs 576 crore post pre-IPO round. The offer-for-sale (OFS) remains the same. It is 3.17 crore equity shares by existing shareholders.

The proceeds from the fresh issue will be used for three major tasks. To repay loans of Aequs and its subsidiaries, AeroStructures Manufacturing India, and Aequs Consumer Products. To purchase machinery and equipment for capacity expansion. And finally, to support future acquisitions, strategic initiatives, and general corporate purposes.

Aequs IPO is backed by leading investors. This includes Amicus Capital, Amansa Capital, Steadview Capital, Catamaran (the family office of NR Narayana Murthy), and Sparta Group. The book running lead managers to the IPO are JM Financial Ltd, IIFL Capital Services Ltd, and Kotak Mahindra Capital Company Ltd.

Company Background and Operations

Aequs Ltd is a contract manufacturing major. It caters to the consumer durables and aerospace sectors. It was founded by Aravind Melligeri. He is the co-founder of QuEST Global Engineering. The company has evolved from a leading aerospace components manufacturer into a diversified contract manufacturing group. It operates manufacturing facilities in India, France, and the USA. It has major Indian clusters in Belagavi, Hubballi, and Koppal (Karnataka).

Aerospace is the company’s core segment. Its major aerospace clients include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems, Safran, GKN Aerospace, Honeywell, and Eaton. However, it has expanded its operations. It now manufactures a wide range of consumer products. This includes cookware, home appliances, toys, figurines, toy vehicles, and plastic components for smart devices and consumer electronics. So now its consumer portfolio includes Hasbro, Spinmaster, Wonderchef, and Tramontina.

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