This precision components maker might raise ₹144cr in pre-IPO placement
What's the story
Precision components maker Aequs Ltd is planning to raise up to ₹144 crore through a pre-IPO placement. The move comes ahead of the company's filing of its red herring prospectus (RHP). The initial public offering (IPO) structure consists of a fresh issue of equity shares worth up to ₹720 crore and an offer-for-sale (OFS) of up to 3.17 crore shares with a face value of ₹10 each.
Fund allocation
Placement capped at 20% of the fresh issue amount
The funds raised via the pre-IPO round will be used to reduce the size of the fresh issue. However, this placement is capped at 20% of the fresh issue amount. The pricing for this round will be determined in consultation with book running lead managers (BRLMs). Aequs's existing institutional shareholders include Amicus Capital Private Equity I LLP, Amicus Capital Partners, Amansa Investments Ltd, Steadview Capital Mauritius Ltd, Catamaran Ekam and Sparta Group LLC.
Share sale
Amicus Capital to offload maximum shares in upcoming OFS
In the upcoming OFS, Amicus Capital will offload the maximum number of shares, around 2.7 crore across its three funds. The Melligeri Private Family Foundation and individual investor Ravindra Mariwala will also be selling their stakes by offering 13.1 lakh and 12.7 lakh shares, respectively. Aequs plans to use the net proceeds from this fresh issue for debt repayment, capital expenditure, inorganic expansion through strategic acquisitions as well as general corporate purposes.
Financial outlook
Aequs's financial performance in FY25
In FY25, Aequs posted a net loss of ₹102.3 crore, widening from a loss of ₹14.2 crore in the previous fiscal year. The company's revenue also declined by 4.2% year-on-year to ₹924.6 crore during this period. Despite these challenges, the upcoming IPO and pre-IPO placement are expected to provide much-needed capital for debt repayment and expansion plans, paving the way for future growth and profitability.