Aequs’ board has approved a preferential issue of warrants worth about Rs 650 crore to a promoter group entity. The company announced the decision and said that the money will fund capacity expansion in its aerospace and consumer businesses.
Aequs: Rs 650 crore warrant issue
The board approved up to 2,80,71,690 warrants. Each warrant can be converted into one equity share of face value Rs 10. The warrants will go to Mellwood Trustee Services. It is the trustee of the Melligeri Private Family Foundation and a member of the promoter group.
The issue needs shareholder approval. Other statutory and regulatory approvals may also be required, the company said.
Aequs warrant issue price
The issue price is Rs 231.55 per warrant. It is the higher of the 90-trading-day and 10-trading-day volume-weighted average prices before September 22, 2026.
Half of the issue size, or Rs 325 crore, will be paid upfront when the warrants are allotted. The company said this is twice the regulatory minimum. The balance will be paid when the warrants are exercised.
Under the rules, warrants can be exercised within 18 months of allotment. Aequs said conversion into shares, along with payment of the balance, will take place on or before December 31, 2027.
The promoter has committed to pay the full balance, whatever the market price of Aequs shares at the time of exercise.
On full conversion, the promoter and promoter group holding will rise from 59.09% to 60.73%.
Aequs expansion plans
Aequs said the proceeds will go towards capacity expansion in aerospace and consumer businesses. This includes development of the Hosur facility. It also includes investment in subsidiaries and joint ventures that support the expansion, and general corporate purposes.
The company said the new equity will also form the base for raising term borrowings for the expansion. It said the opportunities before it need investment ahead of the revenue and cash they generate.
The board has assessed the company’s equity requirement through FY28 and decided to meet it through this issue. The company said a broader capital raise will be considered if its growth plans require it.
“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,” Aravind Melligeri, executive chairman and chief executive officer, said.
Aequs shareholder approval
An Extraordinary General Meeting will be held on Thursday, October 22, 2026, through video conferencing. Shareholders will vote on the proposal there.
The company said detailed terms and other disclosures will be shared with shareholders and filed with the stock exchanges as required by law.
About Aequs
Aequs is a precision manufacturer operating within a single special economic zone in India, with aerospace and consumer segments. In aerospace, it has a portfolio of 5,740 qualified parts across engine systems, structures, actuation, landing systems and assemblies. It supplies to Airbus, Boeing, Safran and Collins Aerospace as a Tier-1 vendor.
Its consumer business covers electronics, plastics, toys and consumer durables. The company operates manufacturing clusters in Belagavi, Hubballi and Koppal in Karnataka, with international operations in the United States and France. It reports annual machining and moulding capacity of about 4.78 million hours, based on annualised first-quarter FY27 figures.
Aequs share price today
Aequs’ share price increased 1.18% as of early trade on September 28. The company’s share price declined 1.47% in the past month. Aequs’ share price has increased 79.39% in 2026 so far.