Contract manufacturing company Aequs Ltd has successfully raised ₹144 crore in a pre-IPO funding round, attracting investments from prominent financial institutions. This development marks a significant milestone for the company as it prepares for its upcoming initial public offering (IPO).

Key Highlights of the Pre-IPO Funding

Impact on IPO

The pre-IPO funding has led to a reduction in the fresh issue size for the upcoming IPO:

Company Overview

Aequs Ltd operates in the contract manufacturing sector, with a focus on:

1. Aerospace manufacturing
2. Consumer durables manufacturing

The company has established a global presence with facilities in:

• India
• France
• USA

Notable Clients

Aequs serves several major clients across industries:

• Airbus
• Boeing
• Hasbro
• Wonderchef

IPO Details

The upcoming IPO will consist of two components:

1. A fresh issue of shares
2. An offer-for-sale of 3.17 crore equity shares

The proceeds from the IPO are earmarked for:

• Loan repayment
• Machinery purchases
• Future growth initiatives

Investor Backing

Aequs has garnered support from notable investors, including:

• Amicus Capital
• Steadview Capital
• Catamaran

This pre-IPO funding round demonstrates strong investor confidence in Aequs's business model and growth prospects. The reduction in the fresh issue size for the IPO suggests that the company has successfully secured a portion of its capital requirements through this private placement. As Aequs prepares for its public debut, investors and market watchers will be keen to see how this established contract manufacturer performs in the public markets.

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:

1. A fresh equity issue to raise funds for the company
2. 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:

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:

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.