Apsis Aerocom

• Apsis Aerocom is coming out with an initial public offering (IPO) of 32,52,000 shares in a price band of Rs 104-110 per equity share. 
• The issue will open on March 11, 2026 and will close on March 13, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 10.40 times of its face value on the lower side and 11.00 times on the higher side.
• Book running lead manager to the issue is Oneview Corporate Advisors.
• Compliance Officer for the issue is Saloni Jayati.

Profile of the company

The company is engaged in the field of precision engineering, with primary focus on manufacture of components and allied services for the aerospace, defence and healthcare industries. Driven by modern manufacturing techniques, it provides engineering and precision machining services, offering end-to-end solutions ranging from design support to final product delivery. It manufactures products based on specific customer requirements and preferences. Each product is customized in accordance with the individual specifications provided by customers and is manufactured pursuant to confirmed orders. It supplies products directly to customers and does not sell its products through dealers, distributors, or other intermediaries. Accordingly, the Company does not maintain a dealer or distributor network, and its sales are executed on a direct-to-customer basis.

It manufactures precision machined components and assemblies catering to a specific niche segment of the defence, aerospace and healthcare industries. Products that it manufactures contribute to the performance, safety, functionality and precision of the aerospace and defence systems and equipment catering to the healthcare sector. The company has both ‘build-to-print’ and ‘build-to-specification’ manufacturing capabilities, pursuant to which it undertakes manufacturing strictly in accordance with the designs, drawings, requirements, and technical specifications provided by the customers.

Its manufacturing processes have consistently demonstrated significant levels of dimensional accuracy over the last three fiscal years. It maintains quality systems aligned with AS9100D and ISO 9001:2015 certifications, which are widely recognized standards in its industries of operation. Its manufacturing facility situated at Bangalore, Karnataka. The facility is divided into Shed 1 (eastern portion) and Shed 2 (western portion) and is equipped with CNC machines capable of handling parts up to 1,200 mm in length. The facility supports CAD/CAM-based design, process development, and precision machining.

Proceed is being used for:

• Funding capital expenditure towards purchase of machinery
• General corporate purposes

Industry Overview

The Indian precision engineering market is witnessing significant growth owing to a rising demand for high precision components in automotive and aerospace sectors. The automotive sector, particularly the EV and advanced ICE, requires precision-engineered parts to enable enhanced efficiency, performance, and durability. Investment is being made into high tolerance machining and automation technologies in order to achieve production of lightweight, high-strength parts that meet exacting industry standards. Meanwhile, the expanding field of aerospace is related to increased demand for defence manufacturing and aircraft production, thus increasing the need for complex and high-accuracy parts, such as engine components, landing gear, and avionics housings. Moreover, businesses are embracing high-end CNC machining, laser cutting, and 3D printing to deliver the precision levels needed by these sectors. In addition, with continued developments in materials science, automation, and quality control, the precision engineering industry is anticipated to experience steady growth, as producers continue to refine production processes to address the changing demands of automotive and aerospace industries.

The Indian precision engineering component market is estimated to reach $536 million in CY2025 and is projected to grow to $759 million by CY2030, reflecting a CAGR of 7.20% over the forecast period. This growth is driven by several key factors, including the rising demand from sectors such as aerospace, defence, medical devices, and clean energy, where high-precision components are critical. Additionally, the Indian government’s Make in India initiative, increased FDI inflows, and emphasis on domestic manufacturing capabilities are fuelling industry expansion. The Indian precision engineering component market is estimated to reach $536 million in CY2025 and is projected to grow to $759 million by CY2030, reflecting a CAGR of 7.20% over the forecast period. This growth is driven by several key factors, including the rising demand from sectors such as aerospace, defence, medical devices, and clean energy, where high-precision components are critical. Additionally, the Indian government’s Make in India initiative, increased FDI inflows, and emphasis on domestic manufacturing capabilities are fuelling industry expansion.

The precision mechanical component industry in India, especially in critical sectors like aerospace, defence, and healthcare, has gained significant momentum due to strong government support and policy interventions. Recognizing its strategic importance, the Indian government has launched multiple initiatives aimed at bolstering domestic manufacturing capabilities, fostering technological innovation, and enhancing self-reliance under broader national programs like Make in India and Atmanirbhar Bharat. This, coupled with a growing geriatric population, represents a key factor offering a favorable market outlook in India. The precision mechanical component industry is entering a transformative phase marked by sustained global growth, technological disruption, and strategic specialization. Over the next decade, the industry is projected to expand rapidly due to increasing reliance on complex, miniaturized, and high-performance components across sectors like aerospace, medical devices, automotive, defence, and industrial automation. The aerospace sector will see long-term demand from commercial aviation expansion, defence modernization programs, and the rise of private space exploration companies. Simultaneously, the healthcare sector is expected to require greater volumes of intricate and biocompatible components due to trends in minimally invasive surgeries, robotic-assisted interventions, and wearable diagnostic devices.

Pros and strengths

Versatile supplier with domestic and international reach: It manufactures and supply aerospace, defence, and healthcare components to both domestic and international customers. A significant portion of its revenue is generated from the domestic market; however, its sales to international customers in the USA, Netherlands, Spain, and Israel add to the diversity of its operations and provide recognition in overseas markets. The combination of domestic and international sales allows it to maintain flexibility in its business model by accessing both domestic and foreign aerospace, defence, and healthcare markets. This reduces the risk associated with dependence on a single geography and ensures that its business is not restricted by the limitations of the domestic market alone. Its approach of building and maintaining an international customer base enables it to leverage opportunities abroad in the event of stagnation or saturation in the domestic market, thereby strengthening the long-term resilience of its business.

Strong Customer Relationships: It has established business relationships with a diverse and well-recognized customer base across its operation industries. These associations have been built on its ability to deliver quality and precise manufactured components, leading its customers to prefer the company for their precision-engineering needs. In order for it to maintain such relationships with its customers, the company has aligned production planning with market requirements and have maintained consistent quality standards as per industry requirements. Such an engagement by its customers has provided operational stability, enhanced visibility for future planning, and contributed to its growth trajectory. As part of its customer-centric approach, it conducted structured customer satisfaction surveys in 2023 and 2024, which offered valuable insights and reaffirmed the strength of its client relationships.

Modern manufacturing facility with focus on quality and capacity: It has a manufacturing facility at Plot No. 392/1, 10th Cross Road, 4th Phase, Peenya Industrial Area, Bengaluru, Karnataka in India. It has stringent quality systems in place which enable it to meet the rigorous and complex requirements of its customers. Its manufacturing facilities have received, AS 9100D and ISO 9001:2015 certifications for manufacturing and supply of precision machined components to its industries of business operations. These quality control measures have rendered positive responses from its customers through periodic customer surveys conducted by the company. By leveraging modern technologies and machinery, it is able to service its customers with intricate engineering capabilities and production of high-quality components that meet the exacting demands of modern applications. Through continuous training and upskilling, its employees ensure that every step of the process is executed with precision and attention to detail. The seamless integration of technology and human capability allows it to achieve a high degree of accuracy, dimensional stability, and robust mechanical performance in its components.

Risks and concerns

Reliance on external manufacturing demand from OEM customers: It is engaged in the business of providing precision machining and component manufacturing solutions for sectors such as aerospace, defence, healthcare, and others, where many customers rely on specialized external vendors like it for high-tolerance and complex component production. Its business model, to a significant extent, is built on the trend of OEMs, outsourcing non-core, precision manufacturing functions to qualified suppliers with advanced capabilities, certifications, and quality systems. However, there can be no assurance that this outsourcing trend will continue. A customer’s decision to outsource depends on several factors, including their in-house capacity, cost structures, strategic focus, regulatory obligations, and perceived control over quality and timelines. Should any of its key customers choose to bring machining operations in-house, either to optimize costs, control supply chains, or reduce dependency on third-party vendors, it could lead to a reduction in order volumes. Additionally, if its customers face a downturn in their own demand or strategic shifts away from external manufacturing, it may reduce their reliance on suppliers like it.

Dependence on leased premises and risks relating to unregistered lease amendments: It does not own any immovable property and it dependents on rental/ leased premises for its operations. While the original lease agreement dated August 11, 2021 for its Manufacturing Unit-I was duly stamped and registered, certain subsequent amendments, including the amendment dated June 26, 2025, which revised the rent and extended the term of the agreement by one month, have not been registered under the applicable provisions of the Registration Act, 1908. There can be no assurance that the enforceability of such unregistered amendments will not be challenged. Any termination, non-renewal, breach, or dispute by the owner/lessor, including termination on shorter notice than anticipated, could require it to vacate the premises or relocate operations, and there is no certainty that alternative premises could be secured on commercially acceptable terms or within a reasonable timeframe.

Geographic concentration risk in key customer markets: A significant portion of its manufacturing operations and revenue is derived from customers located in the states of Karnataka and Telangana. Any adverse developments affecting these states, including changes in state-level policies, taxation, regulatory requirements, infrastructure constraints, labour issues, power or water shortages, natural calamities, or socio-political disturbances, could adversely impact its operations, supply chain, and ability to service customers. Its dependence on these two states exposes it to geographic concentration risks, and any disruption in either Karnataka or Telangana may result in reduced production, delays in deliveries, increased operating costs, or loss of revenue. While it continues to explore opportunities to diversify its customer base and geographic presence, there can be no assurance that such diversification efforts will be successful or sufficient to mitigate the risks arising from this concentration.

Outlook

Apsis Aerocom is engaged in the field of precision engineering, with primary focus on manufacture of components and allied services for the aerospace, defence and healthcare industries. Driven by modern manufacturing techniques, it provides engineering and precision machining services, offering end-to-end solutions ranging from design support to final product delivery. Its manufacturing processes have consistently achieved high levels of dimensional accuracy over the last three fiscal years. It maintains quality systems aligned with AS9100D and ISO 9001:2015 certifications, which are widely recognized standards in its industries of operation. Its manufacturing facility situated at Bangalore, Karnataka supports CAD/CAM-based design, process development, and precision machining. On the concern side, its manufacturing facilities are located in the state of Bangalore, Karnataka. The majority of its revenue is presently from products manufactured at these manufacturing facilities, therefore, any disruption to its manufacturing facilities may result in production shutdowns. Moreover, its business and profitability are substantially dependent on the availability and cost of its raw materials, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact its business, results of operations and financial condition.

The company is coming out with a maiden IPO of 32,52,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 104-110 per equity share. The aggregate size of the offer is around Rs 33.82 crore to Rs 35.77 crore based on lower and upper price band respectively. On performance front, the revenue from operations for FY25 stood at Rs 2,049.06 lakh whereas in FY24 it was Rs 1,686.69 lakh representing an increase of 21.48%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 663.76 lakh and for the year ended March 31, 2024 it was Rs 255.43 lakh representing an increase of 159.86%.

The company has strategically focused on expanding its client base in precision manufacturing sectors such as aerospace, defence and healthcare. By securing orders with leading domestic and international OEMs and government enterprises, the company has ensured recurring business and sustained growth. Its consistent emphasis on customer satisfaction through quality and adherence to industry standards underpins this strategy. Going forward, it intends to become a leading provider of precision machining solutions for the aerospace, defence and healthcare industries, which require precision and modern technology. To ensure it can continue adhering to its customers evolving requirements, it has been considering and evaluating appropriation of resources towards such requirements. It aims to meet the growing demand for precision machined products in such industries by utilising it competence in this domain. Further, it proposes to fund capital expenditure requirements of the company through the Net Proceeds towards the purchase of several machines for its Manufacturing Unit - II located at Plot No. 4-A-14 & 5-A-6, Hitech, Defence and Aerospace Park, Sy No. Parts of 104 & 12, Hoovinayakanahalli Village, Hobli Jala, North Yalahanka, Bengaluru Urban, Bengaluru, Karnataka.