Aequs Raises INR 144 Cr Via Pre-IPO Placement

Aequs Raises INR 144 Cr In Pre-IPO Placement

SUMMARY

Aequs said that it allotted 1.16 Cr shares to SBI Fund Management (via two funds), DSP Mutual Fund and Think Investments via private placement at INR 123.97 apiece to raise the funds

Following the pre-IPO placement, the company will cut the size of its fresh issue by INR 144 Cr

As per company's updated DRHP, the public issue was to comprise a fresh issue of up to INR 720 Cr and an OFS component of up to 3.18 Cr equity shares

Contract manufacturing company Aequs has raised INR 144 Cr (about $16.2 Mn) via pre-IPO placement led by SBI Fund Management, with participation from DSP Mutual Fund and Think Investments.

In a public announcement, the company said that it allotted 1.16 Cr shares to SBI Fund Management (via two funds), DSP Mutual Fund and Think Investments via private placement at INR 123.97 apiece to raise the funds.

Following the pre-IPO placement, the company will cut the size of its fresh issue by INR 144 Cr.

The development comes more than a month after Aequs filed its updated DRHP for its IPO. As per the updated DRHP, the public issue was to comprise a fresh issue of up to INR 720 Cr and an offer-for-sale (OFS) component of up to 3.18 Cr equity shares.

The company plans to use the proceeds from the fresh issue for repayment or prepayment of outstanding borrowings, purchasing machinery and equipment, fuel unidentified acquisitions and general corporate purposes.

In July, the IPO-bound company raised INR 128 Cr via a rights issue, which was led by its holding company Aequs Manufacturing Investments Pvt Ltd, and saw participation from existing investors like Amicus Capital, Steadview Capital, Amansa Investments, and a host of family offices and angel investors.

Founded in 2006 by Aravind Melligeri, Aequs provides manufacturing services to enterprises. It initially started with catering to the aerospace industry and later diversified its offerings to other sectors such as toys and consumer durable goods and products.

It counts the likes of Airbus, Boeing and Collins Aerospace among its clients.

On the financial front, Aequs posted a net loss of INR 102.3 Cr in FY25, up almost 7X from INR 14.2 Cr in the previous fiscal year. Operating revenue declined 4.2% to INR 924.6 Cr from INR 965 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.