Bengaluru, India — Contract manufacturing company Aequs Pvt. Ltd. has successfully raised INR 144 crore (approximately $16.2 million) through a pre-IPO placement, signaling strong investor confidence in the company ahead of its planned initial public offering (IPO). The round was led by SBI Fund Management, with participation from DSP Mutual Fund and Think Investments.
According to a public announcement, Aequs allotted 1.16 crore shares at a price of INR 123.97 per share through private placement to the participating institutional investors. The fresh funds will be utilized to strengthen the company’s balance sheet, fuel expansion, and support its ongoing strategic initiatives in manufacturing and supply chain solutions.
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SBI Fund Management Leads the Investment
The pre-IPO placement was spearheaded by SBI Fund Management, one of India’s leading asset management firms, which subscribed through two of its mutual fund schemes. DSP Mutual Fund and Think Investments also participated, highlighting broad institutional trust in Aequs’ growth story and business fundamentals.
This infusion of capital not only provides liquidity to Aequs ahead of its IPO but also brings on board marquee investors who are likely to add credibility and confidence among future public investors.
Reduction in Fresh Issue Size
As a result of this pre-IPO fundraising, Aequs will reduce the size of its upcoming fresh issue by INR 144 crore. This move aligns with standard market practices, ensuring a balanced capital structure and optimized fundraising strategy as the company heads toward its public listing.
The reduction in fresh issue size is expected to streamline the IPO process while maintaining sufficient capital for expansion and operational growth.
Aequs’ Growth Trajectory
Founded by Aravind Melligeri, Aequs has established itself as a prominent contract manufacturing and precision engineering company, catering to industries such as aerospace, consumer durable goods, and toys. With state-of-the-art manufacturing facilities and integrated supply chain capabilities, Aequs serves several global clients and continues to expand its footprint across India and international markets.
The company’s business model revolves around delivering high-quality, cost-efficient manufacturing solutions — making it a preferred partner for multinational corporations seeking reliable production capabilities in India.
Aequs has also been investing in industrial clusters and aerospace manufacturing ecosystems, such as its Aequs SEZ in Belagavi, Karnataka, which has become a cornerstone of India’s precision engineering sector.
Strong Market Outlook Ahead of IPO
The pre-IPO funding round comes at a time when investor interest in Indian manufacturing and engineering firms is rising, driven by the “Make in India” initiative and increasing global supply chain diversification. Aequs’ ability to attract major institutional investors ahead of its IPO underscores its robust business fundamentals and strong future prospects.
Market analysts expect that the company’s IPO will garner significant attention, given its proven track record, strong leadership, and alignment with India’s manufacturing growth narrative.
Conclusion:
With INR 144 crore raised through a pre-IPO placement led by SBI Fund Management, Aequs is well-positioned to enter the public markets with a strong financial foundation and enhanced investor confidence. The participation of top-tier mutual funds like DSP and Think Investments further validates the company’s growth potential in the evolving manufacturing ecosystem.
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