Belagavi-based Aequs Limited, a vertically integrated precision component manufacturer in the aerospace and consumer segments, will raise fresh capital of up to ₹750 crores through an initial public offering (IPO) to cut its debts and fund future capacity expansion programmes.

Claimed to be the only company offering fully vertically integrated manufacturing capabilities for the aerospace industry within a single special economic zone in India, Aequs’ marquee customer base in the segment includes Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems Inc, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton and Sabca. The aerospace segment contributed 89.19% of its net external revenues in FY25.

The company recorded net revenue of ₹959 crore in FY25, compared to ₹988 crore in the previous financial year. While its earnings from continued operations before finance cost, depreciation and amortisation, share of profits/loss of associate and joint ventures remained positive at ₹107.9 crore, after including all those, the company registered a net loss of ₹102.3 crore in FY25, higher than the ₹14 crore net loss of FY24.

Aequs’ consumer segment business, although small, has companies such as Hasbro, Spinmaster, Wonderchef, and Tramontina as its customers.

“We operate units in three engineering-led vertically-integrated precision manufacturing ecosystems, which enable us to produce complex products for our global original equipment manufacturers (OEMs) customers across the aerospace and consumer sectors. Our advanced manufacturing capabilities enable us to enter into new business segments by leveraging existing capabilities across existing business segments. Our product portfolio comprises components for engine systems, landing systems, cargo and interiors, structures, assemblies and turnings for our aerospace clients; and consumer electronics, plastics and consumer durables for our consumer clients”, the company’s updated draft red herring prospectus (DRHP) states.

Aequs plans to utilise the IPO proceeds to repay its outstanding liabilities, including those of its wholly-owned subsidiaries, AeroStructures Manufacturing India Private Limited and Aequs Consumer Products Private Limited. It will also be used to fund capital expenditure to expand the manufacturing capacity of the company and its subsidiary AeroStructures Manufacturing.

Aequs commenced manufacturing aero-structure components and aero-engine components for aerospace clients in their units in the Belagavi Manufacturing Cluster in 2009. Over the past 15 years, the company has developed and acquired new manufacturing capabilities, diversifying its product portfolio and customer base across the aerospace and consumer segments. It had also made two overseas acquisitions in North America and France in 2015 and 2016, respectively, to add new capabilities in the aerospace Segment, grow its footprint in North America and Europe, and expand its portfolio of products.

Aequs has also entered into joint ventures to enhance its capabilities for developing new products and delivering engineering solutions. The company’s JV, SQuAD Forging India Private Limited (“SQuAD”), has equipped the company with enhanced capabilities to, among others, forge small to medium-sized aerostructural parts for engines, landing gear, and braking system components in aluminium, steel, titanium, or nickel-based alloys.

Aerospace Processing India Private Limited (“API”), its JV with Magellan Aerospace Limited, Canada, formed in 2007, has enabled it to provide innovative surface treatment solutions. In the consumer segment, the company’s JV with Tramontina, Aequs Cookware Private Limited, is equipped with technical capabilities to develop innovative consumer products.

 With over two million square feet of manufacturing spaces across the aerospace and consumer segments, Aequs operates in three unique, engineering-led vertically integrated precision manufacturing “ecosystems” in North Karnataka, India. In addition, Aequs also operates two dedicated precision component manufacturing facilities for the aerospace segment in Cholet (France) and Paris, Texas (the U.S.).

Across its three manufacturing ecosystems in India and two dedicated aerospace facilities outside India, Aequs had an aggregate capacity of 2,919,058 annual machining/moulding hours for products within the aerospace segment and consumer Segment, and over 200 computer numerical control (“CNC”) machines for the aerospace Segment and 161 moulding machines deployed for consumer products.

Aequs is led by Aravind Shivaputrappa Melligeri, a U.S.-based individual who serves as both Executive Chairman and Chief Executive Officer, providing strategic vision and leadership to the Aequs group. Investors also back the company, Amicus Capital Private Equity I LLP, Amicus Capital Partners, Amansa Investments Ltd, Steadview Capital Mauritius Limited, Catamaran Ekam and Sparta Group LLC, which collectively hold 25.54% of the pre-Offer equity share capital.