Airbus and Boeing supplier Aequs on Friday said its board has approved a ₹650-crore equity infusion through warrants by the promoter group, with 50% of the issue size payable upfront.
The board approved a preferential issue of up to 28.07 million warrants to Mellwood Trustee Services, trustee of the Melligeri Private Family Foundation and a member of the promoter group. Each warrant is convertible into one fully paid-up equity share of face value ₹10.
Of the total issue size of around ₹650 crore, ₹325 crore will be payable upfront upon allotment of the warrants. The balance will be payable upon exercise of the warrants. The warrants can be exercised within 18 months from the date of allotment. The conversion of warrants into equity shares, upon payment of the balance consideration, will take place on or before December 31, 2027.
Following full conversion of the warrants, the aggregate holding of the promoter and promoter group in Aequs will increase to 60.73% from 59.09%.
Aequs is a vertically integrated precision manufacturing company operating within a single SEZ in India, with businesses across the aerospace and consumer segments. It is a Tier-1 supplier to global aerospace original equipment manufacturers and system integrators, including Airbus, Boeing, Safran and Collins Aerospace. Proceeds to fund aerospace and consumer capacity expansion and support company’s borrowing program.