Aequs Files Updated DRHP, To Raise INR 720 Cr Via Fresh Issue

SUMMARY

The Bengaluru-based company's proposed public offering will comprise a fresh issue of equity shares worth up to INR 720 Cr and an offer-for-sale (OFS) component of up to 3.2 Cr equity shares

The company intends to utilise the capital raised from the fresh issue to repay or prepay outstanding borrowings worth INR 419.2 Cr, purchase machinery and other equipment and fuel acquisitions

Founded in 2006 by Aravind Melligeri, Aequs is a diversified contract manufacturing company catering to aerospace, toys, and consumer durable goods

Contract manufacturing company Aequs has filed its updated draft red herring prospectus (UDRHP) with SEBI for its initial public offering (IPO). The Bengaluru-based company’s proposed public offering will comprise a fresh issue of equity shares worth up to INR 720 Cr and an offer-for-sale (OFS) component of up to 3.2 Cr equity shares.

The OFS component would see Amicus Capital sell the highest number of shares. Via its three funds – Amicus Capital Private Equity I, Amicus Capital Partners India Fund II and Amicus Capital Partners India Fund I – the PE firm would sell 2.7 Cr shares of Aequs.

Further, Melligeri Private Family Foundation would sell up to 13.1 Lakh shares and individual selling shareholder Ravindra Mariwala would sell up to 12.7 Lakh shares.

The company intends to utilise the capital raised from the fresh issue in the following manner:

Repayment or prepayment of outstanding borrowings worth INR 419.2 Cr. In this, Aequs plans to repay/ prepay borrowings worth INR 172 Cr for subsidiary AeroStructures Manufacturing India Pvt Ltd and INR 223.8 Cr for Aequs Consumer Products Pvt Ltd.
INR 67.5 Cr has been earmarked for purchase of machinery and equipment. While a large chunk of INR 60.6 Cr will be used by AeroStructures Manufacturing India Pvt Ltd, the remaining INR 6.9 Cr will be used by the parent company itself.
The remaining amount would be used to fuel unidentified acquisitions and general corporate purposes.

Founded in 2006 by Aravind Melligeri, Aequs is a diversified contract manufacturing company catering to aerospace, toys, and consumer durable goods. It supplies components to global giants like Airbus, Boeing, Safran, Dassault, and Collins Aerospace, and also manufactures parts for Apple MacBooks and watches. The company has facilities in India, France, and the US.

Ahead of the IPO, Aequs raised INR 128 Cr (around $15 Mn) via a rights issue in July, which was led by its holding company Aequs Manufacturing Investments Pvt Ltd.

On the financial front, Aequs plunged deeper into losses in the run up to filing for its IPO. The contract manufacturer registered a net loss of INR 102.5 Cr in FY25, up over 6X from INR 14.2 Cr in FY24.

Notably, the company incurred an impairment loss on goodwill of INR 48.3 Cr towards its subsidiary Aequs Force Consumer Products Pvt Ltd (AFCPPL) during the year under review.

The company’s top line remained comparatively steadier in FY25. Revenue declined about 4% to INR 924.6 Cr from INR 965.1 Cr in FY24.