The Board of Directors of Aequs Limited has approved a preferential issue of up to 2,80,71,690 warrants, each convertible into one fully paid-up equity share of ₹10 face value, to Mellwood Trustee Services Private Limited, trustee of the Melligeri Private Family Foundation and a member of the promoter group. The proposed issue is valued at approximately ₹650 crore and is subject to approval from shareholders and other required statutory and regulatory authorities.
Under the proposed issue, ₹325 crore, or 50% of the total amount, will be paid upfront at the time of allotment of the warrants. The remaining amount will be payable when the warrants are converted into equity shares. The warrants may be exercised within 18 months from the date of allotment under applicable regulations. However, the conversion of the warrants and payment of the remaining consideration will take place on or before December 31, 2027.
The issue price of ₹231.55 per warrant is the floor price determined under Regulation 164 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The price is based on the higher of the 90-trading-day and 10-trading-day volume weighted average prices preceding the relevant date of September 22, 2026.
Following full conversion of the warrants, the holding of the promoter and promoter group in Aequs is expected to increase from 59.09% to 60.73%. The company plans to use the proceeds to fund capacity expansion across its aerospace and consumer businesses, including development of its Hosur facility, investments in subsidiaries and joint ventures and general corporate purposes. The equity capital will also support the company’s plans to raise term borrowings for its expansion programme.
Aequs said the proposed investment comes as the company is working on several growth opportunities that require capital expenditure ahead of the revenue and cash flows expected from these programmes. The Board has assessed the company’s equity requirements through FY28 and has decided to meet the current requirement through the proposed issue.
Aravind Melligeri, Executive Chairman & CEO, Aequs Limited, 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.”
An Extraordinary General Meeting (EGM) will be held on October 22, 2026, through video conferencing to seek shareholder approval for the proposed preferential issue. Details of the issue and other required disclosures will be provided to shareholders and filed with the stock exchanges as per applicable regulations.
Aequs Limited is an engineering and precision manufacturing company operating across aerospace and consumer products. Its aerospace operations include forging, precision machining, surface treatment and assembly, with 5,740 qualified parts across engine systems, structures, actuation systems, landing systems and assemblies.
The company supplies precision components to global aerospace companies including Airbus, Boeing, Safran and Collins Aerospace. Its consumer manufacturing businesses cover consumer electronics, plastics, toys and consumer durables. Aequs operates manufacturing clusters in Belagavi, Hubballi and Koppal in Karnataka, along with operations in the United States and France. The company has an annual machining and molding capacity of approximately 4.78 million hours, based on Q1 FY27 annualised figures.
