Aequs IPO: Rs 720 Cr Fresh Issue Planned

New Delhi, Sep 30 (PTI) Aequs, a contract manufacturing firm specializing in consumer durable goods and aerospace parts, has filed updated draft papers with Sebi to raise funds through an initial public offering, which includes a fresh issue of equity shares worth Rs 720 crore.

Apart from the fresh issue, the IPO will have an offer for sale of 3.17 crore shares by promoters and existing investors, according to the updated draft red herring prospectus filed on Tuesday.

Funds raised from the IPO 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.

Aequs initially filed confidential draft papers with Sebi in June and secured approval in September to launch the IPO.

With the confidential pre-filing route, a company can withhold public disclosure of IPO details until later stages, a strategy that is increasingly being 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.