Precision engineering and contract manufacturing firm Aequs on Friday said its board has approved ₹650 crore equity infusion, which will be deployed to expand capacity in aerospace and consumer business besides supporting its borrowing programme.
The equity infusion will be made by way of warrants by the promoter group, it said.
Of the total issue size of approximately ₹650 crore, ₹325 crore will be payable upfront upon allotment of the warrants, representing 50 per cent of the issue size and twice the regulatory minimum.
The balance will be payable upon exercise of the warrants, it said.
On full conversion of the warrants, the aggregate holding of the promoter and promoter group in the company will increase from 59.09 per cent to 60.73 per cent, Aequs said.
“The Board of Directors of Aequs Ltd has approved the preferential issue of up to 2,80,71,690 warrants, each convertible into one fully paid-up equity share of face value ₹10, to Mellwood Trustee Services Pvt Ltd, aggregating to approximately ₹650 crore,” the company said.
Mellwood Trustee Services acts as the trustee for the Melligeri Private Family Foundation, serving as a promoter group member for Aequs Ltd.
The issue is subject to the shareholders’ approval and other statutory and regulatory clearances, it said, adding that the company will seek shareholders’ nod at the Extraordinary General Meeting, which has been convened on October 22.
The proceeds will fund capacity expansion across the aerospace and consumer businesses, including the development of the Hosur facility, investment in subsidiaries and joint ventures supporting that expansion and general corporate purposes.
The equity will also provide the base against which the company raises its term borrowings for the expansion. The Board has assessed the company’s current equity requirement through FY28 and has decided to meet it through this issue. A broader capital raise will be considered as and when required by the company’s growth plans, it stated.
In accordance with applicable regulations, warrants may be exercised within 18 months from the date of allotment. However, conversion of warrants into equity shares, by making payment of balance consideration, will take place on or before December 31, 2027, Aequs said.
The promoter has undertaken to pay the balance consideration in full, irrespective of the market price of the company’s shares at the time of exercise, it said.
“We are winning programmes faster than we had planned for, and those wins need investment ahead of the revenue they bring. This issue gives Aequs committed capital to build that capacity and the equity base to support the borrowing that goes with it. The promoter group is subscribing at the price as per Sebi pricing formula and paying half of it upfront – that is the measure of our confidence in what this business can deliver,” said Aravind Melligeri, Executive Chairman and CEO, Aequs Ltd.
The investment comes at an important point in Aequs’ growth journey, as the company advances multiple opportunities across its aerospace and consumer businesses, Aequs said and added that these opportunities require investment ahead of the revenue and cash they generate.
Moreover, the investment further aligns the promoter group’s economic commitment with the company’s long-term growth plans and capital requirements, Aequs said.
Published on September 26, 2026
