Aequs Ltd Unveils ₹720 Crore IPO Plan with Pre-IPO Placement Option
Precision components manufacturer Aequs Ltd announces plans for an Initial Public Offering (IPO) to raise up to ₹720 crore. The IPO includes a fresh equity issue and an offer-for-sale of up to 3.17 crore shares by existing shareholders. The company is considering a pre-IPO placement of up to ₹144 crore. Funds will be used for debt repayment, capital expenditure, strategic acquisitions, and general corporate purposes. Recent financials show a net loss of ₹102.30 crore and revenue of ₹924.60 crore. JM Financial, IIFL Capital Services, and Kotak Mahindra Capital are managing the IPO.
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Precision components manufacturer Aequs Ltd has announced its plans to enter the public market with an Initial Public Offering (IPO) aimed at raising up to ₹720 crore. The company's strategic move includes a fresh equity issue and an offer-for-sale (OFS) of existing shares, potentially reshaping its capital structure and ownership.
IPO Structure and Pre-IPO Placement
The proposed IPO comprises two key components:
- A fresh equity issue to raise funds for the company
- An offer-for-sale of up to 3.17 crore shares by existing shareholders
Additionally, Aequs is considering a pre-IPO placement of up to ₹144 crore. If this placement occurs, it would proportionately reduce the size of the fresh issue in the IPO.
Existing Shareholders and OFS Details
The company's current ownership structure includes significant institutional investors:
| Shareholder | Ownership Percentage (Pre-offer) |
|---|---|
| Amicus Capital Private Equity I LLP | Part of 25.54% |
| Steadview Capital Mauritius Ltd | Part of 25.54% |
| Catamaran Ekam | Part of 25.54% |
In the OFS portion of the IPO:
- Amicus Capital plans to sell approximately 2.7 crore shares across its three funds.
Use of Proceeds
Aequs intends to utilize the funds raised from the fresh issue for several strategic purposes:
- Debt repayment
- Capital expenditure
- Strategic acquisitions
- General corporate purposes
Financial Performance
Recent financial results for Aequs Ltd show:
| Metric | FY (Year not specified) | Previous FY |
|---|---|---|
| Net Loss | ₹102.30 crore | ₹14.20 crore |
| Revenue | ₹924.60 crore | ₹965.10 crore |
The company has experienced a widening of losses and a 4.2% decline in revenue year-over-year.
IPO Management
The book running lead managers for this IPO are:
- JM Financial
- IIFL Capital Services
- Kotak Mahindra Capital
These firms will oversee the IPO process, including marketing, pricing, and allocation of shares.
The announcement of Aequs Ltd's IPO plans comes at a time when the Indian capital markets are seeing increased activity in the manufacturing sector. As a precision components manufacturer, Aequs's public offering may attract attention from investors interested in India's growing industrial capabilities.
Potential investors will likely focus on the company's plans for utilizing the IPO proceeds, particularly in terms of debt reduction and capital expenditure, which could impact its future growth trajectory. The widening losses reported in the most recent fiscal year may also be a point of scrutiny for analysts and investors evaluating the offering.
As the IPO process unfolds, more details are expected to emerge regarding the pricing of shares, the exact timeline for the offering, and any regulatory approvals required.
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