Aequs Ltd, a contract manufacturing company for consumer durable goods and aerospace parts, has raised around ₹ 144 crore from SBI Funds Management, DSP India Fund and Think India Opportunities Fund as a part of a pre-IPO funding round.
With this funding round, the fresh issue in the IPO will now be reduced to around ₹ 576 crore, down from the earlier plan of ₹ 720 crore.
As part of the transaction, Aequs has allotted 11,615,713 equity shares, amounting to 1.88 % stake, to two entities of SBI Funds Management, one each of DSP India Fund and Think Opportunities Master Fund, according to its public announcement on Tuesday.
The shares were allotted at a price of ₹ 123.97 apiece, as part of a pre-IPO placement deal. This takes the fundraising to ₹ 144 crore.
The placement was made pursuant to the resolution of the Aequs Board dated November 10, in accordance with the terms and conditions specified in the Share Subscription Agreements (SSAs).
Aequs had filed updated draft papers in September for an initial public offering (IPO) comprising a fresh issue of shares worth ₹ 720 crore and an Offer-for-Sale of 3.17 crore equity shares.
Funds raised from the IPO would be used primarily for three purposes: repaying loans taken by the company and its two subsidiaries -- AeroStructures Manufacturing India and Aequs Consumer Products -- purchasing machinery and equipment for the company and AeroStructures Manufacturing India; and supporting future growth through potential acquisitions, other strategic initiatives, and general corporate needs.
Aequs initially filed confidential draft papers with Sebi in June and secured approval in September to launch the IPO.
By opting for the confidential pre-filing route, the company could delay public disclosure of IPO details until later stages, a strategy increasingly adopted by Indian firms seeking flexibility in their IPO planning.
Aequs primarily operates in the aerospace segment, but over the years, it has expanded its product portfolio to include consumer electronics, plastics, and consumer durables. Its consumer products include cookware and small home appliances, while its plastics offerings include outdoor toys, figurines, toy vehicles, and components for consumer electronics such as portable computers and smart devices.
The company is backed by prominent investors, including Amicus Capital, Amansa Capital, Steadview Capital, Catamaran (the family office of Infosys founder NR Narayana Murthy), and Sparta Group.
Its key clients span both the aerospace and consumer sectors, including Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems Inc., Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca in aerospace, and Hasbro, Spinmaster, Wonderchef, and Tramontina in consumer products.
It operates manufacturing facilities across India, France, and the USA. In India, the company operates three manufacturing clusters in Belagavi, Hubballi, and Koppal, Karnataka.
Founded by Aravind Melligeri, who has decades of experience in the aerospace sector and was a co-founder of QuEST Global Engineering, Aequs brings strong leadership expertise to its operations.
The book running lead managers to the IPO are JM Financial Ltd., IIFL Capital Services Ltd., and Kotak Mahindra Capital Company Ltd.
