Individual investors Ravindra Mariwala and Raman Subramanian will also lose part of their stake through the OFS route. The company is yet to announce the price range for the IPO.
On September 18, Aequs received the nod from Sebi to launch its public issue.
Aravind Shivaputrappa Melligeri is the promoter of the company. He is also the Executive Chairman and Chief Executive Officer of Aequs. The company is backed by Amicus Capital Private Equity I LLP, Amicus Capital Partners, Amansa Investments Ltd, Steadview Capital Mauritius Limited, Catamaran Ekam and Sparta Group LLC. They jointly own 25.54% of the company’s share capital before the offering. Also Read: Kotak Equities Begins Coverage of Urban Company with a Sell Call; stock trading 15% below its debut price
Aequs IPO timeline
The preliminary allotment in the Aequs IPO is expected on Monday, December 8, while redemptions and equity credits in demat accounts are expected on December 9. The stock is likely to list on Wednesday, December 10.
About Aequs
Aequs started manufacturing aircraft structure components and aircraft engine components for aerospace customers in 2009 at their units in the Belagavi Manufacturing Cluster. It is a vertically integrated precision components manufacturer with capabilities in the aerospace and consumer segments. The company operates in three engineering-led, vertically integrated precision manufacturing ecosystems, allowing it to produce complex products for global OEMs.
The company has also expanded its product portfolio to include consumer electronics, plastics and consumer durables for consumer customers. Its consumer products portfolio includes consumer durables such as cookware, plastics such as outdoor toys, figurines and components for consumer electronics such as wearable computers and smart devices.
The company’s customers include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems Inc. Safran, GKN Aerospace, Mubea Aerostructures and Sabca in the Aerospace segment; and Spinmaster, Wonderchef and Tramontina in the consumer segment.
Net proceeds from Aequs IPO
It is proposed that the net proceeds from the fresh IPO issue will be used for repayment of the company’s outstanding borrowings and prepayment of penalties of two wholly owned subsidiaries: AeroStructures Manufacturing India Private Limited and Aequs Consumer Products Private Limited. It will also use a portion of the proceeds to finance capital expenditures for the purchase of machinery and equipment. It will also fund inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes.
Over the past 15 years, the company has consistently grown its business by developing and acquiring new manufacturing capabilities and diversifying its product portfolio and customer base across the aerospace and consumer segments. Aequs strategically expanded its manufacturing operations in North America and France, through acquisitions in 2015 and 2016, respectively, allowing it to gain new capabilities in the aerospace segment, expand its footprint in North America and Europe, and expand its product portfolio.
Also read: IREDA’s vertical rise from 632% to 42% falls in just 50 sessions, PSU shares give a reality check. Buy, hold or exit?
IPO lead managers
JM Financial, IIFL Capital and Kotak Mahindra Capital are the Book Running Lead Managers for this issue.
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