- Aequs, an aerospace-parts maker, lists on the bourses on 10 December coming off an IPO that got subscribed 101 times
- Despite serving to marquee aerospace clients, the company took nearly two decades to reach a top line of nearly Rs 1,000 crore
- That’s largely because the demand in aerospace is cyclical. If a planemaker sneezes, its suppliers catch the cold, too
- So, as Aequs goes public, it’s betting on its other business—making kitchenware and toys—to scale
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Precision manufacturer Aequs is all set to hit the bourses today, after its initial public offering (IPO) received bids of over 101 times the shares on offer.
And why not? The company has long pitched its base, Belagavi in northern Karnataka, as an emerging aerospace hub. So much so that in its IPO document, Aequs names Belagavi in the same breath as global manufacturing hubs like France’s Toulouse (which houses Airbus’ biggest manufacturing facilities), and the US aerospace valley in southern California (which houses Boeing’s factories).
The company’s founder, Aravind Melligeri, has held up the reliability narrative all along. “We continue to deliver 100% on time and zero defect (products) for over 60 months for several of our customers,” he had
Its credentials—of making around 5,000 of the 4–6 million parts that go into a commercial aircraft—have earned the company a space in the supply chains of Boeing, Airbus, Bombardier, and the like. But what makes Aequs stand out is its unusual mix of customers: the company also makes kitchenware and toys for brands such as Wonderchef, Borosil, Tramontina, Playshifu, and Hasbro.
“It’s like bets you make in horse racing,” said a senior Aequs executive. “You’ll put large amounts of money in your most trusted, most valuable horse, but some money will also go to other horses participating in that race.”
Aerospace remains the main part of Aequs’ business, generating 90% of its Rs 925 crore revenue in FY25. But despite its marquee clients, the segment alone may not provide the company with the large-scale growth it seeks. Owing to cyclical demand in aerospace, when a planemaker pares its demand, the supplier’s revenue gets deferred, the company executive said.
In contrast, Aequs’ consumer-manufacturing cluster in Hubballi, a couple of hours’ drive from Belagavi, works on shorter demand cycles and faster returns. So, “putting money in the consumer [business] is like a hedging strategy any sharp punter would apply,” the executive added.
The Indian government’s recent
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