Aerospace components manufacturer Aequs Limited, headquartered in Hattargi, Belagavi, has filed updated draft papers with market regulator SEBI to raise ₹720 crore through an initial public offering (IPO), positioning the North Karnataka city prominently on India’s capital markets map.
The precision component manufacturer, which has made Belagavi a critical hub in the global aerospace supply chain, received SEBI approval on September 18 and filed its Updated Draft Red Herring Prospectus on September 30, paving the way for what could be one of the most significant IPO launches from Karnataka’s manufacturing sector.
IPO Structure and Funding Plans
The public offering comprises a fresh issue of equity shares worth ₹720 crore alongside an offer-for-sale (OFS) of up to 3.17 crore equity shares by existing stakeholders. The company is also considering a pre-IPO placement of up to ₹144 crore, which would reduce the fresh issue size accordingly.
Promoted by Aravind Shivaputrappa Melligeri, who serves as Executive Chairman and CEO, Aequs plans to utilize the IPO proceeds strategically. The largest chunk – ₹419.2 crore – will go towards debt repayment for the company and its subsidiaries AeroStructures Manufacturing India and Aequs Consumer Products. An additional ₹67.4 crore has been earmarked for purchasing machinery and equipment, while the remaining funds will support strategic acquisitions and general corporate purposes.
Belagavi’s Manufacturing Excellence
What sets this IPO apart is Aequs’ deep connection to Belagavi, where the company operates its flagship 300-acre Belagavi Aerospace Cluster – India’s first notified precision engineering and manufacturing SEZ. The facility, which began operations over a decade ago, has established itself as India’s largest aerospace machining hub with an annual capacity of 1.7 million hours.
“Every airliner has some part made in Belagavi,” has become a reality thanks to Aequs, which manufactures approximately 7,500 aircraft wheels annually for aerospace giants Airbus and Boeing. The company’s vertically integrated manufacturing ecosystem supports 32 precision engineering units on the Belagavi campus, with eight operated directly by Aequs and others by third-party manufacturers.
Global Clientele and Market Position
Aequs serves a prestigious roster of global clients including Airbus, Boeing, Bombardier, Collins Aerospace, Spirit AeroSystems, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton, and Sabca in the aerospace segment. In the consumer segment, the company manufactures for brands like Hasbro, Spinmaster, Wonderchef, and Tramontina.
The company has strategically expanded beyond Belagavi with manufacturing facilities in Cholet, France, and Paris, Texas, creating a global footprint that serves customers across three continents. This international presence was built through strategic acquisitions in 2015 and 2016, which allowed Aequs to acquire new capabilities and expand its product portfolio.
Financial Performance and Investor Backing
Despite impressive global operations, Aequs faced financial headwinds in FY2025, with revenue declining 4.2% to ₹924.6 crore while net losses widened significantly to ₹102.3 crore from ₹14.2 crore in the previous year. The company attributes these challenges to sector-wide pressures and heavy investments in capacity building.
The IPO enjoys backing from prominent institutional investors including Amicus Capital Private Equity, Amansa Investments, Steadview Capital Mauritius, Catamaran (backed by Infosys founder N.R. Narayana Murthy’s family office), and Sparta Group LLC, who collectively hold 25.54% of the pre-offer equity share capital.
Market Positioning and Future Outlook
Aequs plans to restructure its Belagavi operations by the end of this decade, focusing solely on aerospace manufacturing while moving toy and consumer businesses to Koppal. This strategic shift will free up space for aerospace expansion, potentially adding “another couple of million square feet” to meet growing aircraft demand.
“We can then add maybe another couple of million square feet in Belagavi to support this need,” said CEO Aravind Melligeri, highlighting the company’s confidence in the aerospace sector’s growth trajectory.
The IPO will be managed by JM Financial, IIFL Capital Services, and Kotak Mahindra Capital Company, with KFin Technologies serving as the registrar. The company’s shares are proposed to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Regional Impact
For Belagavi, Aequs’ IPO represents more than just a corporate milestone – it underscores the city’s transformation into a global aerospace manufacturing hub. The company’s success has attracted other international players like BIKAR Aerospace GmbH, which chose the Belagavi Aerospace Cluster to establish its advanced Aerospace Service Centre.
The IPO launch comes at a time when India’s aerospace sector is experiencing unprecedented growth, with domestic airlines like Air India, IndiGo, and Akasa planning aggressive expansion. This growth trajectory bodes well for Aequs, which supplies components to manufacturers whose combined monthly orders average over 100 planes.
As Belagavi continues to establish itself as a critical node in India’s aerospace triangle alongside Bangalore and Hyderabad, Aequs’ public listing will likely attract more investor attention to the region’s manufacturing capabilities and growth potential.
The company has not yet announced specific dates for the IPO launch, but market watchers expect the issue to open soon following the completion of regulatory formalities.