Aequs is planning to raise $200 Mn through the initial public offering

This comes days after Aequs has converted into a public entity as it plans to go public

This year a couple of startups, including Groww, Shiprocket, PhysicsWallah and boAt also went on to file their DRHP through confidential route

Karnataka-based Aequsa contract manufacturing company for consumer durable goods and aerospace parts, has reportedly filed a confidential draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI).

An ET report said that the startup is planning to raise $200 Mn (around INR 1,700 Cr) through the initial public offering (IPO).

This comes days after Aequs has converted into a public entity as it plans to go public. Back then, the startup said in a regulatory filing that it received approval from its board on April 25 to change its name to ‘Aequs Limited’ from ‘Aequs Private Limited’ earlier.

Inc42 has sent queries to Aequs for comments on the development. The story will be updated based on the response.

Founded in 2006 by Aravind Melligeri, Aequs is a diversified contract manufacturing startup catering to the needs of entities operating in the aerospace, toys and consumer durable goods industries. It operates manufacturing units across India, France, and the US and counts Airbus, Boeing, Safran, Dassault and Collings Aerospace among its clients.

Aequs claims to have built India’s toy manufacturing ecosystem in the Koppal Toy Manufacturing Cluster, in Karnataka and also managed to secure contracts to manufacture parts of MacBooks and Apple Watches last year.

Till date the startup has raised over $81 Mn in funding and counts Amicus Capital, Steadview Capital, Catamaran, the family office of Infosys founder Narayana Murthy among its backers.

According to the startup’s standalone financial statements for the fiscal year ended March 31, 2024, (FY24), its operating revenue increased merely 6.45% to INR 74.20 Cr from INR 69.70 in the previous fiscal year. However, the net loss expanded almost 200% to INR 130.30 Cr for the period under review from INR 43.60 Cr in FY23.

In the run up for its IPO, the startups also approved the appointment of Melligeri as the executive chairman and CEO of the company for five years with effect from May 13, 2025 to May 12, 2030. However, the startup said in a separate regulatory filing that the appointment still awaits go-ahead from the government as Melligeri is a non-resident.

Many new-age startups are choosing to file their Draft Red Herring Prospectus (DRHP) confidentially when preparing for an IPO, a trend that has gained traction since the introduction of this option by SEBI in 2022. This year a couple of startups, including Growww, Ship rocket, PhysicsWallah and boAt also went on to file their DRHP through confidential route.

Confidential filing of draft papers allows companies to keep their data pertaining to their financial results and other regulatory information safe and does not get available in the public domain until the market regulator approves their papers.

According to the Inc42’s IPO tracker more than 20 new age startups are eyeing for their public listing this year and are at different stages of their IPO proceedings. Out of these, 11 of them including ArisInfra, Avanse Financial Services and BlueStone have got a nod from the market regulator on their DRHP. However, Ather is the only one who went on to get listed this year.