Ahead of IPO, Aequs attracts Rs 144 crore investment from leading domestic funds

Aequs Ltd a contract manufacturing company for consumer durable goods and aerospace parts has raised around Rs 144 crore from SBI Funds Management DSP India Fund and Think India Opportunities Fund as a part of a preIPO funding roundWith this funding round the fresh issue in the IPO will now be reduced to around Rs 576 crore down from the earlier plan of Rs 720 croreAs part of the transaction Aequs has allotted 11615713 equity shares amounting to 188 per cent stake to two entities of SBI Funds Management one each of DSP India Fund and Think Opportunities Master Fund according to its public announcement on TuesdayThe shares were allotted at a price of Rs 12397 apiece as part of a preIPO placement deal This takes the fundraising to Rs 144 croreThe placement was made pursuant to the resolution of the Aequs Board dated November 10 in accordance with the terms and conditions specified in the Share Subscription Agreements SSAsAequs had filed updated draft papers in September for an initial public offering IPO comprising a fresh issue of shares worth Rs 720 crore and an OfferforSale of 317 crore equity sharesFunds raised from the IPO would be used primarily for three purposes repaying loans taken by the company and its two subsidiaries AeroStructures Manufacturing India and Aequs Consumer Products purchasing machinery and equipment for the company and AeroStructures Manufacturing India and supporting future growth through potential acquisitions other strategic initiatives and general corporate needsAequs initially filed confidential draft papers with Sebi in June and secured approval in September to launch the IPOBy opting for the confidential prefiling route the company could delay public disclosure of IPO details until later stages a strategy increasingly adopted by Indian firms seeking flexibility in their IPO planningAequs primarily operates in the aerospace segment but over the years it has expanded its product portfolio to include consumer electronics plastics and consumer durables Its consumer products include cookware and small home appliances while its plastics offerings include outdoor toys figurines toy vehicles and components for consumer electronics such as portable computers and smart devicesThe company is backed by prominent investors including Amicus Capital Amansa Capital Steadview Capital Catamaran the family office of Infosys founder NR Narayana Murthy and Sparta GroupIts key clients span both the aerospace and consumer sectors including Airbus Boeing Bombardier Collins Aerospace Spirit AeroSystems Inc Safran GKN Aerospace Mubea Aerostructures Honeywell Eaton and Sabca in aerospace and Hasbro Spinmaster Wonderchef and Tramontina in consumer productsIt operates manufacturing facilities across India France and the USA In India the company operates three manufacturing clusters in Belagavi Hubballi and Koppal KarnatakaFounded by Aravind Melligeri who has decades of experience in the aerospace sector and was a cofounder of QuEST Global Engineering Aequs brings strong leadership expertise to its operationsThe book running lead managers to the IPO are JM Financial Ltd IIFL Capital Services Ltd and Kotak Mahindra Capital Company LtdThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever