Aequs IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is the only precision component manufacturer operating within a single special economic zone in India to offer fully vertically integrated manufacturing capabilities in the Aerospace Segment, which sets the company apart from other contract manufacturers with selective manufacturing capabilities amongst its peers. Precision components are precisely machined parts that are designed and manufactured to exact specifications and are commonly supplied to OEM customers and system integrators. Its diverse product portfolio includes components for engine systems, landing systems, cargo and interiors, structures, assemblies and turning for its aerospace clients.

Its advanced manufacturing capabilities also enable it to enter into new business segments by leveraging existing capabilities. While it primarily operate in the Aerospace Segment, over the years, it has expanded its product portfolio to include consumer electronics, plastics, and consumer durables for its consumer clients. Its diverse consumer product portfolio includes consumer durables such as cookware and small home appliances, plastics such as outdoor toys, figurines, toy vehicles and components for consumer electronics such as portable computers and smart devices. It is one of the few manufacturers in India with niche metallurgy capabilities, specializing in precision machining of high-end alloys, including titanium alloys for its aerospace clients.

Since the commencement of its operations, it has cultivated long-standing relationships with customers, including marquee global OEM customers across the aerospace and consumer industries, and it has over the years established ourselves as key global suppliers for its customers. Its key clients include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems Inc, Safran, GKN Aerospace, Mubea Aerostructures, Honeywell, Eaton and Sabca in the Aerospace Segment, and, Hasbro, Spinmaster, Wonderchef, and Tramontina. Due to the collaborative nature of the manufacturing which it undertakes along with its OEM customers, who have very specific product requirements and stringent quality standards, it has been able to maintain high levels of client stickiness and retention.

IPO Details:

Objectives of Issue:

• Repayment and/ or prepayment, in full or in part, of certain outstanding borrowings and prepayment penalties,
• Funding capital expenditure to be incurred on account of purchase of machinery and equipment
• Funding inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes

Key Strengths:

• Operations in unique, engineering-led vertically-integrated precision manufacturing ecosystems- The company is the only precision component manufacturer operating within a single special economic zone in India to offer fully vertically integrated manufacturing capabilities in the Aerospace Segment which sets it apart from other contract manufacturers with selective manufacturing capabilities amongst its peers.
• High Entry of Barrier – The company has established long-standing relationships with high entry barrier global customers, such as Airbus, Collins Aerospace, Spirit Aerosystems Inc., Safran and Boeing in the Aerospace Segment, and Hasbro, Spinmaster, Wonderchef, and Tramontina in the Consumer Segment. Over the years, it has also established ourselves as Tier-1 suppliers for such OEM customers. It has high client stickiness and retention due to the collaborative nature of the manufacturing that it undertake along with its OEM customers, who have very specific product requirements and stringent quality standards. Its deep understanding of OEM customers’ requirements allows it to continuously innovate and upgrade its capabilities in order to develop complex products with quick turnaround times. Extensive testing and validation processes required to fulfil very specific product requirements and stringent quality requirements by aerospace OEM customers create a significant barrier to entry for new market entrants. Due to the substantial investment required to establish advanced precision manufacturing capabilities, develop proof of concept and cultivate relationships with global OEMs creates high barrier for new players
• Comprehensive precision product portfolio across high value segments- As of September 30, 2025, it produces over 5,000 products within the Aerospace Segment under a variety of manufacturing and assembly programs established with its aerospace customers. It is a Tier-1 supplier of highly engineered precision components for certain global OEMs, and has a diversified range of product offerings across the Aerospace Segment and Consumer Segment. Its aerospace product portfolio comprises distinct products across engine systems, landing systems, cargo and interiors, structures, assemblies and turning.

Risks:

• Significant Dependence on Aerospace – The company derive a significant portion of its net external revenue from the Aerospace Segment (88.23% for the six months period ended September 30, 2025, 86.00% for the six months period ended September 30, 2024, 89.19% for the Financial Year 2025, 78.44% for the Financial Year 2024 and 72.06% for the Financial Year 2023). Any decrease in demand of products within the Aerospace Segment or any development that makes the sale of products within the Aerospace Segments less economically beneficial may adversely affect its business, results of operations, financial condition and cash flows.
• Dependency on the Top 10 customers - The company is  dependent on its ten largest customer groups, which comprise a significant portion of its revenue from operations (82.51% for the six months period ended September 30, 2025, 85.56% for the six months period ended September 30, 2024, 88.57% for the Financial Year 2025, 86.51% for the Financial Year 2024 and 86.48% for the Financial Year 2023). Any failure to maintain its relationship with these customer groups or any adverse changes affecting their financial condition will have an adverse effect on its business, results of operations, financial condition and cash flows.
• Concentrated Manufacturing Facility - The company operate units in three manufacturing clusters in India, Belagavi Manufacturing Cluster, Hubballi Manufacturing Cluster and Koppal Manufacturing Cluster all situated in the state of Karnataka. The concentration of the units in the manufacturing clusters that it operates in, in the state of Karnataka exposes it to regional risks and adverse events specific to the state. These regional risks include disruptions to infrastructure, significant natural disasters, workforce disruptions, changes in general economic and political conditions, civil unrest, the regulatory environment, and local government policies, among others.

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The company operates in the aerospace sector, manufacturing precision components for engines, landing systems and other critical assemblies. Its high level of integration makes its business model relatively unique. Given that aerospace is a capital-intensive industry with long gestation periods, the company’s growth remains closely linked to the expansion of this sector.

When assessing peers, a direct comparison is not meaningful. On one side, the company has considered EMS players that primarily cater to consumer electronics; however, its revenue contribution from the consumer segment is minimal, and the operating metrics of consumer EMS and aerospace manufacturing differ significantly. On the other side, the available aerospace peers do not operate in the same product segments and are not comparable in scale. Therefore, peer-based financial benchmarking offers limited relevance.

The company has now turned EBITDA positive, and as it scales, its operating margins are expected to improve further, supported by the high entry barriers inherent in the aerospace industry. Investors with a long-term perspective may find this IPO suitable, while short-term investors may consider subscribing for potential listing gains.

IPO Allotment

Find out the allotment status for the Aequs IPO by checking the Kfin Technologies IPO Application Status page.