Aequs Seeks to Raise Rs 720 Crore Through Updated IPO Filing with Sebi

Aequs, a contract manufacturing company, has submitted revised draft documents to Sebi for an initial public offering (IPO). This includes a new equity share issue worth Rs 720 crore. The IPO will also feature an offer for sale of 3.17 crore shares by promoters and current investors, as detailed in the updated draft red herring prospectus filed recently.

The funds from the IPO are intended for various purposes. They will be used to repay loans taken by Aequs and its subsidiaries, AeroStructures Manufacturing India and Aequs Consumer Products. Additionally, the funds will aid in purchasing machinery and equipment for the company and AeroStructures. They will also support future growth through potential acquisitions, strategic initiatives, and general corporate needs.

Focus on Aerospace and Consumer Products

Initially focusing on aerospace, Aequs has broadened its product range over time. It now includes consumer electronics, plastics, and consumer durables. Its consumer products encompass cookware and small home appliances, while its plastics offerings feature outdoor toys, figurines, toy vehicles, and components for consumer electronics like portable computers and smart devices.

Aequs operates manufacturing facilities in India, France, and the USA. In India, it runs three manufacturing clusters located in Belagavi, Hubballi, and Koppal in Karnataka. The company is supported by notable investors such as Amicus Capital, Amansa Capital, Steadview Capital, Catamaran (the family office of Infosys founder N R Narayana Murthy), and Sparta Group.

Key Clients and Strategic Approach

The company's major clients in the aerospace sector include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems Inc., Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca. In the consumer products segment, it serves Hasbro, Spinmaster, Wonderchef, and Tramontina.

Aequs initially filed confidential draft papers with Sebi in June and received approval in September to proceed with the IPO. The confidential pre-filing route allows companies to keep IPO details private until later stages. This approach is increasingly popular among Indian firms seeking flexibility in their IPO planning.

The company's strategic expansion into diverse sectors highlights its adaptability and growth potential. By leveraging its expertise in aerospace manufacturing while diversifying into consumer products and electronics, Aequs aims to strengthen its market position.

With inputs from PTI