AEQUS IPO To Raise Fresh Capital Worth 7.2 Billion Rupees Alongside Offer For Sale Of Existing Shares

Aequs Limited, a Bengaluru-based diversified precision component manufacturer, is gearing up to launch its Initial Public Offering (IPO) with a total issue size targeting approximately 7.2 billion rupees through fresh equity issuance alongside an Offer For Sale (OFS) of around 31.8 million existing shares. This move marks a significant milestone for the company’s expansion and access to public equity markets.

Key Highlights Of The IPO

The IPO comprises a fresh issue of equity shares valued up to ₹7.2 billion, intended to fund debt repayment, machinery purchases, and potential acquisitions.

The Offer For Sale component involves approximately 31.8 million existing shares being sold by private equity holders, including Amicus Capital and key family investors.

Aequs Limited operates in vertically integrated manufacturing clusters focusing on aerospace, toys, and consumer durable goods, serving clients like Airbus, Boeing, Bombardier, and Apple.

The company’s revenues rose 25% year-on-year to about ₹970 crore in FY 2023-24, reflecting robust growth though it reported a net loss driven by expansion costs.

The IPO is managed by JM Financial, IIFL Capital, and Kotak Mahindra Capital, with planned listings on BSE and NSE.

Strategic Vision And Use Of Proceeds

Funds from the fresh issue are earmarked primarily to repay or prepay outstanding borrowings, invest in advanced manufacturing equipment, and support general corporate purposes including growth initiatives.

The strategic capital raise positions Aequs to bolster manufacturing capacities, enhance product quality, and expand its footprint domestically and abroad.

Market Significance And Investor Appeal

This IPO offers investors exposure to a niche precision manufacturing sector with global OEM clientele and innovative growth prospects. Aequs’ competitive strengths and expansion plans are expected to attract strong market interest upon listing.

Source: Inc42, Groww, Economic Times, SEBI Filings