Aequs Attracts ₹144 Crore from SBI Funds, DSP, Think India in Pre-IPO Round

In what signals a strong vote of confidence from marquee institutional investors, Aequs Ltd, a leading contract manufacturing company catering to both consumer durable and aerospace sectors, has raised ₹144 crore in a pre-IPO funding round. The investment came from SBI Funds Management, DSP India Fund, and Think India Opportunities Fund, underscoring the growing investor appetite for India’s fast-evolving manufacturing ecosystem — particularly in high-value, precision engineering sectors.

This fresh capital infusion not only strengthens Aequs’ financial footing ahead of its public market debut but also reshapes its IPO structure. The company has now trimmed the size of its upcoming fresh issue to about ₹576 crore, a strategic recalibration from the earlier planned ₹720 crore, reflecting the impact of this successful pre-IPO round.

Aequs Funding: Institutional Faith in “Make in India” Manufacturing

The participation of some of India’s most respected fund houses is being seen as a solid endorsement of Aequs’ growth story and its diversified business model. According to the company’s public filing on Tuesday, Aequs allotted 1.16 crore (11,615,713) equity shares, representing about 1.88% stake, to the four entities — two under SBI Funds Management, and one each from DSP India Fund and Think Opportunities Master Fund.

While the company has not disclosed valuation details, such high-profile institutional participation ahead of a public issue usually reflects strong confidence in the firm’s fundamentals, governance practices, and future growth trajectory.

Industry experts believe this move is in sync with the broader shift among large investors looking to back manufacturing plays that align with India’s “Make in India” and “Atmanirbhar Bharat” initiatives. As India pushes to become a global hub for both consumer electronics assembly and aerospace component manufacturing, companies like Aequs find themselves at the heart of that transition.

Aequs: Building India’s Manufacturing Backbone

Founded in 2006, Aequs Ltd has quietly emerged as one of India’s few globally competitive contract manufacturing firms that straddles both consumer durables and aerospace — two sectors often considered worlds apart. Headquartered in Belagavi, Karnataka, the company operates one of India’s first aerospace-focused precision engineering SEZs, which has attracted both domestic and international OEMs.

In recent years, Aequs has diversified beyond aerospace, expanding into consumer goods, toys, and lifestyle manufacturing, serving several global brands. This diversification has not only helped it reduce cyclicality from the aerospace sector but also position itself in high-demand consumer manufacturing categories where global supply chains are increasingly “China+1” focused.

With the government’s PLI (Production Linked Incentive) schemes giving a major thrust to manufacturing localization, companies like Aequs are reaping the benefits of policy support and global demand shifts.

The Road to IPO: Timing and Strategy

The pre-IPO round now paves the way for Aequs’ much-anticipated public offering. The fresh issue size, revised to ₹576 crore, indicates that the company has managed to secure enough institutional support to reduce its dependency on public market funding.

Market watchers suggest that this could help the company price its IPO more competitively while offering investors a leaner and more efficient equity structure. Such strategic pre-IPO placements are increasingly common among Indian firms preparing for market listings, particularly in capital-intensive sectors like manufacturing, infrastructure, and renewables.

Moreover, with investor sentiment currently buoyed by strong domestic manufacturing data and positive macroeconomic cues, Aequs’ timing seems opportune.

What It Means for India’s Manufacturing Story

Aequs’ funding round is more than just another pre-IPO headline — it’s symbolic of how India’s manufacturing narrative is being redefined. For decades, global manufacturing was dominated by East Asian economies. But the tide is turning. From Apple’s contract manufacturers to aerospace suppliers, India is gradually emerging as a serious contender for global supply chain diversification.

Institutional investors — once focused largely on tech startups — are now eyeing industrial and manufacturing bets as India’s next growth frontier. Aequs’ ability to draw big-ticket investments from blue-chip funds is yet another proof that “hardware” is making a strong comeback in the investment lexicon.

For Aequs, the pre-IPO round brings not just capital, but credibility. Backing from SBI, DSP, and Think India puts the company firmly on the radar of long-term institutional investors who typically prize governance, scale, and operational excellence.

As India continues to position itself as a global manufacturing powerhouse, companies like Aequs are poised to play a pivotal role in bridging innovation, policy, and industrial capability. And with its IPO on the horizon, Aequs’ next chapter might well mirror the broader transformation story of Indian manufacturing — from contract producer to global partner of choice.

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