Aequs IPO

Aequs Ltd

Aequs Limited was incorporated on March 27, 2000 and is a precision contract manufacturer headquartered in Belagavi SEZ, Karnataka, with its registered office in Bengaluru. It manufactures precision machined components and assemblies primarily for the aerospace industry (engine systems, landing systems, cargo & interiors, structures, assemblies and turning) and also supplies parts for consumer electronics, plastics and consumer durables.

The company offers fully vertically integrated capabilities under a single SEZ ecosystem (machining, forging, surface treatment and assembly) and specialises in high-end metallurgy including titanium and other aerospace alloys. Aequs has expanded internationally through acquisitions and subsidiaries in the U.S. and France and through joint ventures (e.g., SQuAD, API) to add forging and surface-treatment capabilities. Its marquee customers include Airbus, Boeing, Collins Aerospace, Spirit AeroSystems, Safran and GKN Aerospace, among others.

DRHP Filled - 1st October 2025 RHP Filled - 26th November 2025

BRLM - JM Financial , IIFL Capital , Kotak IB Auditor : B S R & Co. LLP

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Delta's View :

Aequs is a good-quality precision manufacturing company. However, the IPO ask valuation of ~9x P/S does not give much comfort. India is emerging as a major global hub for aerospace and defence manufacturing, creating a large opportunity for domestic precision manufacturers like Aequs. The company has been supplying precision components and aero-structures for over a decade to global Tier-1 aerospace OEMs such as Airbus, Boeing, Safran, Spirit AeroSystems, Collins Aerospace and others. In recent years, it has built out a consumer division which is currently loss-making and is dragging on overall profitability. Management has indicated that they will focus on scaling and stabilising this vertical, a successful turnaround here could materially improve margins and strengthen the company’s overall earnings profile.

Based on the Current GMP of 36%, one can expect decent listing gains , provided the GMP Sustains.

• Aequs has long-standing relationships of around 10–15 years with high-entry-barrier global OEMs such as Airbus, Boeing, Safran, Collins Aerospace and Spirit AeroSystems on the aerospace side, and brands like Hasbro, Spinmaster, Wonderchef and Tramontina on the consumer side. The top five customer groups contribute roughly 65–73% of revenue across FY23–FY25, and the top three customer groups have an average relationship length of about 15 years. 
• Aequs operates dedicated aerospace facilities in Cholet, France and Paris, Texas in the US to serve local and global clients more closely. On a consolidated basis, the installed machining and moulding capacity translates to utilisation of only about 41–42 percent in FY25 (around 44 percent in FY24). Within that, India aerospace is healthier with higher capacity utilisations, while the overseas facilities and the consumer cluster in India are running at much lower utilisations.

• The consumer segment contributes only about 100 crore of external revenue in FY25 versus roughly 824–825 crore from the aerospace segment. In FY23, the consumer business was closer to about 227 crore of revenue, so the topline has actually shrunk, This segment delivered an EBITDA loss of roughly 28.7 crore in FY25, an EBITDA margin of about minus 29 percent, while the aerospace segment operates at a positive high-teens margin. One of the major reasons for decline has been revenue from Hasbro, which has steadily reduced from 143 crore (17% of revenue from operations) in FY 2023 to 116 crore (12%) in FY 2024 and further to 61.12 crore (6.61%) in FY 2025.

• Aequs is trying to pivot into higher-value consumer-electronics and electrical components. It has started mass production of components for portable computers and intends to ramp up into smart-device components, supplying at least one very large global consumer-electronics or appliance player whose name is not disclosed. If this scales, it can help them in diversifying away from the Aerospace Revenues, if this works out , this might lead to Positive Consumer Margins and overall positive Margins.
• Other Expenses are at roughly 30–32 percent of revenue; subcontracting as the key Component in FY25, other expenses are about ~ 300 crore against revenue from operations of about 924.6 crore, implying roughly 32 percent of revenue. A major component within this is subcontracting expenses, which are about ~118 crore in FY25, similar at about ~118 crore in FY24 and about ~102 crore in FY23. The company uses subcontractors (especially for lower-complexity machining and support work) so that internal capacity can be reserved for higher-value, more complex parts. .

About Business

Aequs is a vertically integrated precision manufacturing company with capacities across aerospace and consumer products. It focuses on producing complex, high-precision components and assemblies for global OEMs, built around cluster-based manufacturing ecosystems in India, Europe and the US.

In aerospace, Aequs supplies machined components, forgings, sub-assemblies and aerostructure parts to global OEMs and Tier-1s such as Airbus, Boeing, Safran, Spirit AeroSystems and Collins Aerospace. On the consumer side, it manufactures toys and plastic products for players like Hasbro and Spin Master, and cookware and other consumer products for brands such as Wonderchef and Tramontina. The top 5 customer groups contributed roughly 65–73 percent of revenue over FY23–FY25, and the top 3 groups have been associated with the company for around 15 years.

The company operates across multiple geographies through three integrated manufacturing clusters in India and two dedicated aerospace facilities overseas. In India, the Belagavi manufacturing cluster in Karnataka is an aerospace-focused SEZ that houses facilities for forging, high-precision machining, surface treatment, heat treatment, metal press forming and assembly. The Koppal cluster focuses on toys and plastics with injection and blow- moulding capacity. The Hubballi cluster is used for cookware, consumer durables and emerging consumer-electronics components. Outside India, Aequs operates aerospace facilities in Cholet, France and in Paris, Texas, giving it local presence near key Western OEMs.

The business is organised into two primary segments -

The aerospace segment is the core and dominant one, contributing close to 90 percent of external revenue in FY25. It supplies more than a few thousand distinct parts across engine systems, landing gear, cargo and interiors, structural components and complex turnings, with content on major aircraft platforms such as the A220, A320 family, A330, A350, B737, B767, B777 and B787. The company highlights capabilities in machining high-end alloys including titanium and other difficult-to-machine materials, supported by in-house or ecosystem access to special processes and assemblies.

The consumer segment is a smaller, contributing a little over 10 percent of external revenue in FY25, and is built around manufacturing components for portable computers and smart devices, plastics such as outdoor toys, figurines and toy vehicles, and consumer durable products like non-stick cookware and small home appliances for global and domestic brands. The company's has clients such as Hasbro, Spinmaster, Wonderchef and Tramontina; management has stated that their strategy is to gradually increase the mix of higher-margin consumer electronics within this segment.

Issue Details

Fresh Issue up to ₹670 Cr

Repayment / prepayment of borrowings of ~433 Cr of the Company and its three wholly owned subsidiaries (ASMIPL, ACPPL and AEPPL)

Capital expenditure of ~64 Cr towards purchase of machinery and equipment for Aequs Limited and its subsidiary AeroStructures Manufacturing India Private Ltd Rest for funding inorganic growth (unidentified acquisitions), other strategic

initiatives and general corporate purposes, within the regulatory limits

Offer for Sale of up to 31.77 million equity shares

Amicus Capital group entities together up to 17.12 million shares, comprising:

     Amicus Capital Private Equity I LLP – up to 7.48 million shares

Amicus Capital Partners India Fund I – up to 0.75 million shares Amicus Capital Partners India Fund II – up to 8.88 million shares

Melligeri Private Family Foundation ( Promoter Group ) , up to 1.32 million shares Ravindra Mariwala, up to 0.87 million shares

Girija Dempo Family Private Trust, up to 0.44 million shares Vasundhara Dempo Family Private Trust, up to 0.44 million shares

Aequs Manufacturing Investments Private Limited, up to 0.10 million shares Other individual shareholders together up to 0.03 million shares

Promoters and Leadership

Aravind Shivaputrappa Melligeri is the founder and Individual Promoter of Aequs. He is 57 years old and serves as the Executive Chairman and Chief Executive Officer. He holds a bachelor’s degree in mechanical engineering from Mangalore University and a master’s degree in mechanical engineering from The Pennsylvania State University, and is also an alumnus of the National Institute of Technology, Karnataka. He has over 25 years of experience in the aerospace sector and has led the development of Aequs’ manufacturing clusters, including the Belagavi aerospace SEZ.

Rajeev Kaul is the Managing Director of the company. He holds a bachelor’s degree in arts (mathematics) from the University of Delhi and is a member of the Institute of Chartered Accountants of India. He has over 22 years of experience in finance and aerospace, and is responsible for the overall operations and performance of Aequs’ aerospace and consumer verticals.

Dr. Eberhard Klaus Richter is an Independent Director. He holds a degree in engineering and a doctorate in robotics from the Technical University of Munich, Germany. He has over 29 years of experience in procurement, materials management and business management, and has previously worked with organisations such as Airbus, Diehl, BMW and McKinsey.

Dinesh Venkatachalam Iyer is the Chief Financial Officer (CFO). He holds a bachelor’s degree in commerce from Bangalore University and is a member of the Institute of Chartered Accountants of India. He has around two decades of experience in finance and oversees the end-to-end finance function, including governance, risk management, treasury, taxation and reporting.

The company has three corporate promoters:

Aequs Manufacturing Investments Private Limited (AMIPL) – a Mauritius- incorporated investment holding company within the promoter group.

Melligeri Private Family Foundation (MPFF) – an Indian family trust formed in 2011 for the benefit and maintenance of Melligeri family beneficiaries.

The Melligeri Foundation (TMF) – a Cayman Islands foundation company that acts as a holding and investment vehicle for the promoter group.

Shareholding Pattern

Promoters and promoter group collectively own ~64.5% of the company (pre-IPO), primarily through Aequs Manufacturing Investments Pvt Ltd (47.2%) and Melligeri Private Family Foundation (16.5%), both ultimately controlled by founder Aravind Shivaputrappa Melligeri and his family trust.

The remaining large shareholdings are held by financial investors such as Amansa Investments,Steadview Capital Mauritius, Amicus Capital funds, Catamaran Ekam (Premji family office), Sparta Group LLC, and the Aequs Stock Option Plan Trust. Together, the top nine shareholders (promoters + key investors + ESOP trust) account for ~89.2% of the pre-Offer equity share capital

The company completed a ₹144 crore pre-IPO placement in November 2025 to SBI Emergent India Fund, DSP India Fund – India Long/Short Strategy, SBI Optimal Equity Fund – Long Term and Think India Opportunities Master Fund LP

Financial Snapshot

Industry & Competition

Related Party Transactions

The company has around 22 subsidiaries (along with a few joint ventures and an associate), and other related-party transactions have averaged a little over 24% of revenue from operations over the last three years.

Litigations and Controversial Activities

There is a large income tax dispute pending against the company. The tax department has treated about ₹71.2 crore received from promoter-group member Jagadish Melligeri as unexplained income under Section 68 and, based on this, has raised an income tax demand of about ₹77.9 crore for FY 2017–18.The company has challenged this before the Karnataka High Court and the Commissioner of Income Tax (Appeals) the matter is currently pending.