Bengaluru: Aerospace and precision manufacturing firm Aequs Ltd. has raised ₹144 crore through a pre-IPO placement from marquee institutional investors including SBI Funds Management, DSP India Fund, and Think India Opportunities Master Fund LP, reflecting the growing investor confidence in India’s expanding precision engineering and aerospace supply chain.
According to the company’s regulatory filing, Aequs allotted 11.6 million equity shares, representing 1.88% of its pre-offer capital, at a price of ₹123.97 per share, as approved by its board on November 10, 2025. The issuance was carried out under Share Subscription Agreements signed with the participating funds.
Impact on IPO Size
Following this pre-IPO placement, the size of the fresh issue in Aequs’ upcoming initial public offering (IPO) will be reduced to ₹576 crore, compared to the earlier proposed ₹720 crore. However, the offer-for-sale (OFS) component of 31.77 million shares remains unchanged, as per the company’s updated draft red herring prospectus (UDRHP).
Breakdown of Investor Participation
The largest allocation went to SBI Emergent India Fund, which invested ₹62.99 crore for a 0.82% stake. It was followed by SBI Optimal Equity Fund – Long Term (₹36.99 crore; 0.48%), DSP India Fund – India Long/Short Strategy Fund (₹39.99 crore; 0.52%), and Think India Opportunities Master Fund LP (₹4 crore; 0.05%).
The company stated that the shares allotted in this pre-IPO round are subject to a lock-in period in line with SEBI’s ICDR Regulations. All participating investors are independent and unconnected with Aequs’ promoters or management.
A Vertically Integrated Aerospace Ecosystem
Founded in 2006, Aequs operates one of India’s only vertically integrated aerospace manufacturing ecosystems, located within its dedicated Special Economic Zone (SEZ) in Belagavi, Karnataka. The company’s operations span across aerospace components, precision machining, plastics manufacturing, and consumer durable production.
Aequs’ client portfolio includes global aerospace leaders such as Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems, Safran, Honeywell, Eaton, and GKN Aerospace. In the consumer products segment, it supplies to Hasbro, Spinmaster, Wonderchef, and Tramontina.
The company’s existing investors include Amicus Capital, Amansa Capital, Steadview Capital, Catamaran Ventures (the family office of Infosys founder N.R. Narayana Murthy), Sparta Group, and the investment office of Desh Deshpande.
Investor Confidence in Manufacturing Depth
Industry experts say that this latest pre-IPO investment highlights strong institutional confidence in Aequs’ manufacturing depth and sectoral diversification, particularly at a time when India’s aerospace supply chain is emerging as a strategic global hub.
The valuation implied by the placement—at ₹123.97 per share—suggests investors anticipate long-term growth in export-led precision manufacturing and aerospace offset programs, both of which are key to India’s defense and aviation ecosystem.
IPO Outlook
Aequs’ forthcoming IPO will be managed by JM Financial, IIFL Capital Services, and Kotak Mahindra Capital Company. The public offering is expected to serve as a litmus test for investor appetite in India’s industrial technology and advanced manufacturing sectors, which are gaining prominence as the country strengthens its position in the global supply chain.
