Belgaum-based contract manufacturing company Aequs has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its Initial Public Offering (IPO), marking a significant milestone in its growth journey. The regulator issued its observations on September 18, 2025, as part of its weekly processing report, thereby clearing the company’s Draft Red Herring Prospectus (DRHP) filed via the confidential pre-filing route in June 2025.
In SEBI’s regulatory framework, the issuance of “observations” signals formal approval for a company to move ahead with its IPO plans. Aequs’ upcoming public issue is expected to raise $200 million (approximately ₹1,700 crore), positioning it as one of the more prominent manufacturing IPOs in recent times.
Aequs: A Global Contract Manufacturing Powerhouse
Founded in 2006 by Aravind Melligeri, Aequs has grown into a diversified contract manufacturing platform with operations across aerospace, toys, and consumer durable goods. The company has established itself as a trusted supplier to global giants such as Airbus, Boeing, Safran, Dassault, and Collins Aerospace. Additionally, Aequs plays a key role in the Apple supply chain, manufacturing parts for MacBooks and Apple Watches.
Aequs operates manufacturing facilities in India, France, and the United States, making it one of the few Indian-origin companies with a significant footprint across major international markets. Its vertically integrated manufacturing capabilities allow the company to deliver end-to-end solutions, from precision machining to final assembly.
Strategic Moves Ahead of IPO
In preparation for its IPO, Aequs undertook several strategic initiatives. One notable move was the conversion of its legal entity from a private limited company to a public one by removing “Private” from its name. This is a mandatory step for Indian companies planning to list on stock exchanges.
Furthermore, in May 2025, Aequs raised ₹128 crore (approximately $15 million) through a rights issue, which was led by its holding company, Aequs Manufacturing Investments. This capital infusion is expected to support the company’s working capital needs and potential capacity expansion ahead of its IPO.
Market Outlook and Investor Interest
Aequs’ IPO comes at a time when India is witnessing a surge in interest around manufacturing and defense sector investments, driven by government initiatives like ‘Make in India’ and global supply chain diversification efforts. As a well-established player in both aerospace and consumer sectors, Aequs is poised to benefit from this macroeconomic tailwind.
With its robust client base, global manufacturing capabilities, and proven operational track record, Aequs is expected to attract significant interest from institutional and retail investors alike.
Conclusion
As Aequs prepares to go public, the company’s SEBI-approved IPO marks a critical step in its journey toward greater scale and international prominence. With a diversified portfolio and strong backing from global clients, Aequs is well-positioned to leverage the capital markets to fuel its next phase of growth.
