India’s private aerospace sector is gearing up for a landmark year, with three key players—SMPP Ltd., Aequs Ltd., and Unimech Aerospace—set to collectively raise around ₹5,700 crore through upcoming IPOs.

This unprecedented drive for capital infusion marks a defining shift in the country’s aerospace manufacturing trajectory, reinforcing India’s ambition to position itself as a global supply chain hub under the Make in India and Atmanirbhar Bharat frameworks.​

SMPP Ltd.: Scaling Ammunition And Defence Components

New Delhi-based SMPP Ltd., a major defence equipment and ammunition manufacturer, will raise ₹4,000 crore through its main-board IPO. The issue includes a ₹580 crore fresh issue and ₹3,420 crore offer-for-sale by promoter Shiv Chand Kansal.

Proceeds from the fresh issue will finance the establishment of a new ammunition manufacturing facility under SMPP Ammunition Pvt. Ltd., alongside procurement of advanced machinery and infrastructure development. SMPP’s portfolio spans protection systems for land, sea, and air platforms, personal armour, and large-calibre ammunition.​

Aequs Ltd.: Precision Manufacturing Expansion

Belagavi-based Aequs Ltd., one of India’s leading vertically integrated precision component manufacturers, is set to launch an IPO worth ₹720 crore, including both fresh equity and an offer-for-sale. The company operates across aerospace and consumer goods sectors, catering to elite global clients such as Airbus and Boeing.

Funds will be directed towards debt repayment, acquisitions, and capacity expansion across its advanced manufacturing clusters. The offering is backed by private equity firms including Amicus Capital and Steadview Capital. Aequs’s strategic focus on aerospace sub-assemblies and engine structures underscores its global ambition.​

Unimech Aerospace: Diversifying Engineering Excellence

Bangalore-based Unimech Aerospace and Manufacturing Ltd. will raise ₹500 crore via its upcoming IPO, equally divided between a fresh issue and an offer-for-sale. The DRHP specifies allocations for new equipment procurement, expansion of subsidiary investments, and working capital enhancement.

The company, a rising leader in high-precision aerospace and defence systems, has achieved stellar growth—revenue surged to ₹213.79 crore and profit to ₹58.13 crore in FY 2024, marking a year-on-year expansion of over 120 percent and 155 percent respectively. The IPO, managed by Anand Rathi Advisors and Equirus Capital, will list on both NSE and BSE.​

Market And Policy Catalysts For Growth

India’s aerospace and defence sector, valued at $27.1 billion in 2024, is forecast to reach $54.4 billion by 2033, growing at nearly 7 percent annually. This expansion is powered by government policies such as the Make in India and Atmanirbhar Bharat initiatives, which have elevated the defence and aerospace ecosystem to strategic national priority.

Liberalised foreign direct investment (FDI) limits—up to 74 percent automatic and 100 percent by approval—have drawn global OEM collaborations, while schemes like iDEX and the Technology Development Fund (TDF) incentivise MSME innovation with dedicated funding and defence linkages.​

Global Integration And Competitiveness

India’s aerospace component market currently represents about two percent of global supply but is projected to rise fivefold within a decade.

The nation’s cost competitiveness—estimated at 15–25 percent over global benchmarks—has encouraged companies such as Boeing, Safran, Rolls-Royce, and GE Aerospace to expand sourcing from India.

With over 500 domestic firms engaged in component manufacturing and recent public market entries strengthening private capital flows, India is poised to emerge as a global hub for precision aerospace manufacturing and engineering excellence.​

IDN (With Agency Inputs)