Precision engineering player Aequs has come out with a $102.4 million IPO that was completely subscribed within hours of debuting on Wednesday. The firm is mostly engaged aircraft component production and is a supplier to Boeing and Airbus.
Boeing and Airbus, two of the biggest participants in the aircraft industry, are eager to increase their supply from India, which is emerging as a reliable substitute for China.
“Our expansion on the aerospace side to bring in new expertise is among our main growth drivers. What we are attempting to do is develop into vertical integration,” its chief executive Aravind Melligeri said.
For Aequs, roughly 89.19% of FY25 income came from aerospace while 10.81% came from consumer, a study from Angel One indicated.
Aequs delivers completely vertically integrated, precise manufacturing environment for the aerospace and consumer industries. In order to provide supply chain efficiencies to its worldwide clientele, the firm has manufacturing facilities in the USA, France, and India. In Karnataka, it runs three industrial clusters.
What works for the firm is its SEZ-based integrated ecosystem that produces a cost-efficient, export focused and internationally competitive precise engineering solutions.
Both Boeing and Airbus currently obtain components worth more than $1 billion from the nation. India is the world’s fastest-growing civil aviation market, and there is intense rivalry among carriers, according to Guillaume Faury, CEO of Airbus, who just traveled there. Both IndiGo and Air India have placed orders for over 1,000 aircraft with Airbus.
Prime Minister Modi’s desire to make India into a manufacturing powerhouse for global companies is attracting attention from global aviation sector as it struggles to deal with local difficulties. Boeing was faced with a massive workers’ strike last year resulting to production delays and a backlog of deliveries.
Aerospace precision engineering is entering a sustained growth phase, driven by a massive global aircraft backlog of 14,158 units. India’s aerospace and defense precision engineering (A&D PEC) sector is also poised for rapid expansion — projected to grow from ₹137.86 billion in 2024 to ₹362.08 billion by 2030, at a CAGR of 17.46%. According to Angel One, companies offering vertically integrated and cost-efficient manufacturing capabilities stand to gain the most from these favorable industry trends.
