Belagavi-based contract manufacturing giant Aequs has raised INR 128 crore (~USD 15 million) through a rights issue ahead of its much-anticipated INR 1,600 crore (USD 200 million) IPO. The strategic fund infusion comes at a crucial time as the company prepares to list on Indian stock exchanges in the coming months.
Aequs Rights Issue Backed by Key Investors
The rights issue was led by Aequs’ holding entity, Aequs Manufacturing Investments, and saw active participation from prominent existing investors, including Amicus Capital, Steadview Capital, and Amansa Investments, alongside several family offices and angel investors.
As per regulatory filings with the Registrar of Companies, 1.71 crore equity shares were allocated to existing shareholders at a face value of INR 10 per share with a premium of INR 64.64, pricing each share at INR 74.64. The holding company alone contributed INR 84.83 crore, while Amansa Investments and Amicus Capital infused INR 14.16 crore and INR 12.32 crore, respectively.
Aequs IPO on the Horizon
Ahead of the rights issue, Aequs confidentially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and the stock exchanges in early June 2025. The confidential route, a growing trend among private firms seeking flexibility during listing preparations, means financial specifics remain undisclosed publicly.
The company has transitioned from “Aequs Private Limited” to “Aequs Limited”, marking its shift to a public entity. Aequs also appointed its founder, Aravind Melligeri, as Executive Chairman and CEO for a five-year term beginning 13 May 2025.
Aequs IPO will include a fresh issue of equity shares along with an Offer for Sale (OFS) component. According to some industry reports, Kotak Mahindra Capital, JM Financial, and IIFL Capital are acting as the book-running lead managers for the offering.
Diversified Global Manufacturer with Elite Clientele
Founded in 2006 by Aravind Melligeri, Aequs is a diversified contract manufacturer that caters to high-growth sectors like aerospace, consumer durable goods, and toys. With manufacturing facilities across India, France, and the United States, Aequs has built a robust supply chain network.
Its prestigious client base includes global aerospace majors like Airbus, Boeing, Safran, Dassault, and Collins Aerospace. The company has also reportedly joined elite Indian manufacturers such as Tata Electronics, Motherson Group, and Jabil in producing mechanical components for Apple products, marking a significant milestone in its diversification efforts.
Aequs also operates three industrial clusters in Belagavi, Hubballi, and Koppal (Karnataka), enhancing its logistical and operational capabilities.
Financials: Modest Growth, Soaring Losses
While financials for FY25 remain confidential, standalone figures from FY24 indicate that operating revenue grew by 6.45% to INR 74.20 crore, up from INR 69.70 crore in FY23. However, the company’s net loss surged nearly 200%, ballooning to INR 130.30 crore from INR 43.60 crore in the previous year, reflecting operational or expansion-related stress.
Despite these losses, the broader financial picture appears robust. The company’s total income for FY24 was around INR 988 crore, while operating income stood at INR 970 crore, as per internal estimates and filings.
Backed by Strategic and Global Investors
Aequs has steadily attracted equity infusions from both domestic and global investors over the years. Notable stakeholders include Catamaran Ventures (the family office of Infosys founder N.R. Narayana Murthy), Sparta Group, and Desh Deshpande’s investment office. Cumulatively, the company has raised over USD 96 million (~INR 830 crore) (including the current rights issue) since inception.
Part of a Larger Trend
Aequs IPO aspirations come amid a broader wave of tech and industrial companies preparing to go public in 2025. As of mid-year, 19 firms, including Urban Company, BlueStone, and Curefoods, have filed DRHPs. However, only three — Ather Energy, ArisInfra, and Smartworks — have successfully debuted on the bourses so far.
Conclusion
The INR 128 crore rights issue marks a pivotal step in Aequs’ journey from a privately held contract manufacturer to a publicly listed global industrial player. With strong investor backing, an expanding international footprint, and a diversified sectoral presence, Aequs appears well-positioned to capture market attention in what is shaping up to be a dynamic IPO year for India’s manufacturing and tech ecosystem.
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