Aequs Raises ₹128 Cr Through Rights Issue Ahead of IPO Plans

Before submitting its DRHP to SEBI on a confidential basis last month, contract manufacturing firm Aequs secured INR 128 Cr (approximately $15 Mn) through a rights issue spearheaded by its parent company, Aequs Manufacturing Investments Pvt Ltd.

Aequs, established in 2006 by Aravind Melligeri, is a varied contract manufacturer that serves the needs of organizations in the aerospace, toy, and consumer durable goods sectors.  With manufacturing facilities in the US, France, and India, it boasts clients such as Boeing, Airbus, Dassault, Safran, and Collings Aerospace.

Other current investors, including Amicus Capital, Steadview Capital, Amansa Investments, as well as several family offices and angel investors, also took part in the round. 

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According to the company’s submissions to the Registrar of Companies, Aequs issued 1.71 crore equity shares at a face value of INR 10 and a premium of INR 64.64 each in early May to generate the funding.

Aequs’ holding company contributed INR 84.83 Cr, while Amansa Investments and Amicus Capital invested INR 14.16 Cr and INR 12.32 Cr, respectively.

As of the time this story was published, Aequs had not responded to inquiries regarding the fundraising.

To date, the company has secured more than $96 million in funding, including its most recent fundraising round.

It submitted its DRHP in early June to get listed on the stock exchanges.  Media reports indicate that Aequs plans to generate $200 million through its public offering.

Aequs transformed into a public entity ahead of the IPO and designated Melligeri as the executive chairman and CEO for a five-year term starting on May 13, 2025.

The company submitted its draft IPO papers through the confidential route, so its most recent financial figures are not accessible.  For the fiscal year 2024, its standalone operating revenue increased by 6.45%, reaching INR 74.20 Cr compared to INR 69.70 Cr in the prior fiscal year.  Nevertheless, the net loss skyrocketed by nearly 200% to INR 130.30 Cr from INR 43.60 Cr in FY23.

Aequs is included in the extensive roster of contemporary Indian tech firms aiming for a public listing this year.  This year, 19 companies, such as Urban Company, BlueStone, and Curefoods, have submitted their DRHPs. However, only three – Ather Energy, ArisInfra, and Smartworks – have gone public in 202 year.