Aequs to float IPO on Dec 3; aims to raise ₹670 cr via fresh issue

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Aequs, a contract manufacturing firm specialising in consumer durable goods and aerospace parts, is gearing up to launch its initial public offering (IPO) comprising fresh issue of shares worth Rs 670 crore on December 3. 

The company's maiden public offering will conclude on December 5 and anchor investors will be allocated shares on December 2, according to the red herring prospectus (RHP). 

Apart from the fresh issue, the IPO will have an offer for sale of 2.03 crore shares by promoters and existing investors. 

Funds raised from the fresh issue would be used for 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; and supporting future growth through potential acquisitions, other strategic initiatives, and for general corporate needs. 

Earlier this month, Aequs raised around Rs 144 crore from SBI Funds Management, DSP India Fund and Think India Opportunities Fund as a part of a pre-IPO funding round. 

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 N R Narayana Murthy --, and Sparta Group. 

Its key clients are 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 runs three manufacturing clusters in Belagavi, Hubballi, and Koppal in 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.