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14 Jun, 2025
Aequs, a leading contract manufacturing firm for consumer durables and aerospace components, is moving ambitiously towards a public listing. The board of the company has given a nod to the proposal of changing the status of Aequs from private to public. In addition, they have confidentially pre-filed the Draft Red Herring Prospectus (DRHP) with SEBI and the stock exchanges. This IPO is expected to raise about $200 million, which is close to ₹1,660 crore with a fresh issue of equity shares as well as an OFS (offer for sale)of equity shares.
Aequs was started by Aravind Melligeri, who has decades of experience in the aerospace domain, as an example of a vertically integrated, precision manufacturing ecosystem. The company has manufacturing units located in Belgavi, Hubballi, and Koppal in Karnataka and has facilities in France and the USA. Aequs’s supply chain services are relevant to numerous industries thanks to their international presence.
Aequs earned a total income of ₹988 crore in FY24 along with an operating income of ₹970 crore, demonstrating good operational performance. Over the years, the company has attracted significant equity infusions from its promoters and marquee global investors, including Amicus Capital, Amansa Capital, Steadview Capital, Catamaran (the family office of Infosys founder N R Narayana Murthy), Sparta Group, and the investment office of Desh Deshpande.
The proposed IPO will comprise a mix of fresh equity shares and an Offer for Sale (OFS) component. This structure allows Aequs to raise new capital for expansion while also providing an exit opportunity for some existing investors. The company has appointed Kotak Mahindra Capital, JM Financial, and IIFL Capital as the lead managers for the issue.
Financially, Aequs reported a total income of approximately ₹988 crore in FY24, with an operating income of ₹970 crore, reflecting its strong operational performance and growth trajectory.
The funds raised are intended to support the company’s expansion plans, scale operations, and capitalize on new growth opportunities, particularly in its core sectors of aerospace and consumer durable manufacturing. Additionally, the IPO will enable some existing investors, including major private equity backers, to partially or fully exit their investments6. By going public, Aequs aims to enhance its market profile, strengthen its balance sheet, and position itself for further global growth
Aequs has selected the confidential pre-filing option, which allows a company to submit IPO documents to SEBI without public filing and retain discretion over disclosing it to the public. This is becoming popular among Indian firms because of its convenience. Unlike the regular route which stipulates that an IPO must be launched within twelve months of receiving SEBI approval, in the confidential route this period is increased to eighteen months. Moreover, firms may alter the primary issue size with an increase or decrease of 50% until an updated DRHP is submitted.
Other well-known firms like Groww, Shiprocket, Tata Capital, PhysicsWallah, Imagine Marketing (boAt), Swiggy, and Vishal Mega Mart have recently taken this route. Tata Play was the first Indian company to utilize this option in December 2022.
With Kotak Mahindra Capital, JM Financial and IIFL Capital as lead managers, Aequs is set to proceed with its IPO plans subject to approval from regulators and prevailing market conditions. The listing is likely to enhance the capital Base for other economic activities and provide some divestment opportunities to current shareholders. As more Indian firms take up the secret pre-filing route, Aequs’s step underscores the increasing allure this approach holds for fast-growing companies considering public offerings.
Aequs’ confidential IPO filing marks a major milestone in its growth journey, reflecting both its operational strength and the increasing adoption of innovative listing strategies in India’s evolving IPO landscape.
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