Aequs Gears Up for Lift-Off: ₹922-Crore IPO Set to Test Market Appetite for Precision Manufacturing

Image taken from Businesstoday.in

Aequs Limited is preparing for its entry into the public markets with an IPO priced between ₹118 and ₹124 per share, marking a major step for the precision-engineering company that straddles both the aerospace and consumer-products worlds. The issue opens for subscription on December 3 and closes on December 5, with its market debut scheduled for December 12. The anchor book will open a day earlier, on December 2, setting the stage for institutional participation.

The public offer adds up to ₹922 crore, split between a fresh issue of ₹670 crore and an Offer for Sale (OFS) worth ₹252 crore from existing shareholders. Among the selling investors are Amicus Capital, Melligeri Private Family Foundation, Aeques Manufacturing Investments, and several well-known family trusts and individual backers who have supported the company’s growth over the years.

The allocation structure leans heavily toward institutions, with 75% reserved for qualified institutional buyers (QIBs). Non-institutional investors (NIIs) will see up to 15%, and retail investors up to 10% of the offer. A small employee quota of ₹2 crore has also been carved out, with eligible staff receiving a ₹11 discount on the final issue price.

Aequs plans to channel the proceeds from the fresh issue into strengthening its balance sheet and expanding its operational capabilities. The priorities include reducing debt for the company and two of its subsidiaries—AeroStructures Manufacturing India and Aequs Consumer Products—acquiring new machinery and equipment, and supporting long-term expansion through potential acquisitions and strategic initiatives.

Ahead of the IPO, the company secured ₹144 crore from marquee institutional investors such as SBI Funds Management, DSP India Fund, and Think India Opportunities Fund through a pre-IPO placement, which helped trim the size of the fresh issue.

Aequs has built its reputation primarily in aerospace manufacturing, supplying precision components to global heavyweights including Airbus, Boeing, Honeywell, Safran, Collins Aerospace, and Bombardier. Over time, the company expanded into consumer electronics, plastics, and home-durables manufacturing—producing everything from cookware to plastic toys to parts for smart devices. On the consumer side, its client roster features familiar names like Hasbro, Spinmaster, Wonderchef, and Tramontina.

The company’s global footprint spans manufacturing sites in India, France, and the United States, anchored by three major industrial clusters in Karnataka—Belagavi, Hubballi, and Koppal.

The IPO is being managed by JM Financial, IIFL Capital Services, and Kotak Mahindra Capital, who will oversee book-building and investor allocations as the company seeks to position itself as a stronger, more diversified player in precision manufacturing worldwide.