Aequs approves proposed ₹650 crore promoter-backed warrant issue
Belagavi-based precision manufacturer Aequs has approved the proposed issue of up to 280,716,900 warrants to a promoter-group trustee for about ₹650 crore. The transaction requires shareholder and regulatory approval, and the proceeds are intended to fund aerospace and consumer-sector capacity expansion, including the company’s Hosur facility.
Aequs Limited, a Belagavi-based precision manufacturer, has approved a proposed preferential issue of up to 280,716,900 warrants to Mellwood Trustee Services Private Limited, trustee of the Melligeri Private Family Foundation and a member of the company’s promoter group. The proposed issue is valued at approximately ₹650 crore and remains subject to shareholder approval and other statutory and regulatory clearances, according to a company communique cited by The Hindu. Each warrant would be convertible into one fully paid-up equity share with a face value of ₹10.
Half of the issue value, or ₹325 crore, would be paid upfront when the warrants are allotted. The balance would be payable when the warrants are converted into shares. Under the company’s terms, conversion may take place within 18 months of allotment and must occur on or before December 31, 2027.
The warrants are priced at ₹231.55 each. Aequs said this was the floor price determined under the applicable Securities and Exchange Board of India regulations, based on the higher of the 90-trading-day and 10-trading-day volume-weighted average prices before September 22, 2026. The company plans to use the proceeds for capacity expansion in its aerospace and consumer businesses.
The funds are also intended for development of its Hosur facility, investment in subsidiaries and joint ventures connected with the expansion, and general corporate purposes. Aequs said the equity would provide a base for raising term borrowings to support the planned expansion. The board had assessed the company’s equity requirements through financial year 2028 and decided to address them through the proposed issue, while leaving open the possibility of a broader capital raise later.
On full conversion, the holding of the promoter and promoter group would rise from 59.09% to 60.73%. The promoter has committed to paying the outstanding consideration in full regardless of the company’s share price at the time of conversion. Executive chairman and chief executive Aravind Melligeri said the company was securing programmes faster than expected and needed to invest before the resulting revenue and cash flows were generated.
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