Aequs Transitions files confidential DRHP with Sebi to launch its IPO; may raise $200 mn

Aequs, a diversified contract manufacturer, has filed a confidential draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise approximately $200 million (Rs 1,700 crore) through the IPO. It has transitioned from a private entity to a public company as it readies itself for the IPO.

This fundraising effort will involve both a fresh issue of equity shares and an offer for sale by existing stakeholders, capitalising on the increasing investor interest in aerospace manufacturing.

The firm received approval from its board on April 25, 2025, to change its name from 'Aequs Private Limited' to 'Aequs Limited', marking a significant step towards its upcoming public listing. This strategic move aligns Aequs with over 20 new-age tech companies aiming for public listings in 2025, joining the ranks of PhysicsWallah, BlueStone, and boAt.

In a further development, the board approved the appointment of Aravind Melligeri as executive chairman and CEO for a tenure of five years starting May 2025. However, this appointment is pending approval from the Centre due to Melligeri's non-resident status. This leadership change is part of Aequs's broader strategy to strengthen its executive team ahead of the IPO.

Aequs's aerospace manufacturing business is a substantial revenue driver, encompassing forging, precision machining, and aerostructure assembly. The company operates manufacturing facilities in India, the US, and France, with joint ventures like Aerospace Processing India and SQuAD Forging India playing key roles in its operations.Aequs is headquartered in Belagavi, Karnataka and operates a manufacturing Special Economic Zone (SEZ) which has transformed the local landscape into an industrial hub. The development of infrastructure, including the six-laning of the Pune–Bengaluru highway, has further boosted its operational capabilities.

The company supplies a vast array of components to major aerospace companies including Boeing, Airbus, and Honeywell. It is also reportedly collaborating with Apple Inc., potentially integrating into the tech giant's global supply chain, which could further enhance its market position.

Promoted by Hubballi-born entrepreneur Aravind Melligeri, Aequs has expanded its operations to include sectors beyond aerospace, such as consumer durable goods. Melligeri, who co-founded QuEST Global Engineering, plays a pivotal role in steering the company’s expansive growth strategy.

Investors in Aequs include prominent names like Amicus Capital, Amansa Capital, and Steadview Capital, among others. These investors are set to benefit from the IPO, which is anticipated to provide significant returns as Aequs continues to expand its market footprint in the aerospace sector.