Aequs Limited, the aerospace components maker based in Hattargi, Belagavi, has filed updated draft papers with SEBI to raise ₹720 crore through an initial public offering (IPO), marking a significant milestone for North Karnataka’s manufacturing hub on India’s capital markets map.
The precision engineering firm, which has built Belagavi into a key node in the global aerospace supply chain, secured SEBI clearance on September 18 and submitted its Updated Draft Red Herring Prospectus on September 30. The move sets the stage for one of the state’s most high-profile IPOs in the manufacturing sector.
IPO Structure and Fund Use
The issue comprises a fresh equity raise of ₹720 crore and an offer-for-sale (OFS) of up to 3.17 crore shares by existing investors. Aequs may also explore a pre-IPO placement of up to ₹144 crore, which would proportionately reduce the fresh issue size.
Led by promoter and CEO Aravind Shivaputrappa Melligeri, the company plans to allocate ₹419.2 crore towards debt repayment for itself and subsidiaries AeroStructures Manufacturing India and Aequs Consumer Products. Another ₹67.4 crore will be invested in machinery purchases, with the balance reserved for acquisitions and corporate needs.
Belagavi as a Manufacturing Hub
Central to this offering is Aequs’ 300-acre Belagavi Aerospace Cluster—India’s first precision engineering SEZ and now the country’s largest aerospace machining hub with 1.7 million annual hours. Over a decade in operation, it houses 32 precision units, eight run directly by Aequs.
Known for producing around 7,500 aircraft wheels annually for Airbus and Boeing, Aequs has made “every aircraft carries a part from Belagavi” a near reality.
Clientele and Global Reach
Aequs’ aerospace customers include Airbus, Boeing, Collins Aerospace, Bombardier, Safran, Spirit AeroSystems, GKN Aerospace, Honeywell, Eaton, and Sabca. In consumer products, it manufactures for Hasbro, Spinmaster, Wonderchef, and Tramontina.
Beyond Belagavi, the company operates plants in Cholet (France) and Paris (Texas), expanding its global presence through acquisitions in 2015 and 2016.
Financials and Investor Support
For FY25, Aequs reported a 4.2% revenue drop to ₹924.6 crore and widened net losses at ₹102.3 crore, compared with ₹14.2 crore the previous year. The company attributes this to sector challenges and heavy capex.
Its pre-offer equity is backed by marquee investors such as Amicus Capital, Amansa Investments, Steadview Capital Mauritius, Catamaran (the Narayana Murthy family office), and Sparta Group LLC, together holding 25.54%.
Future Outlook
Aequs plans to shift its toy and consumer businesses to Koppal, dedicating Belagavi exclusively to aerospace and freeing up space for expansion. “We can then add another couple of million square feet in Belagavi to meet rising demand,” said CEO Melligeri.
JM Financial, IIFL Capital Services, and Kotak Mahindra Capital Company will manage the issue, with KFin Technologies as registrar. Shares will be listed on both NSE and BSE.
Regional Significance
For Belagavi, the IPO is more than a fundraising exercise, it cements the city’s role in India’s aerospace map. The Aequs cluster has already drawn global players like BIKAR Aerospace GmbH, which set up an Aerospace Service Centre there.
With India’s airlines placing record orders, Aequs’ expansion dovetails with sector growth, further positioning Belagavi alongside Bengaluru and Hyderabad in the country’s aerospace triangle.
While the IPO dates are yet to be announced, the issue is expected to open soon after regulatory processes conclude.
