Belagavi firm Aequs gets approval for ₹650-crore equity infusion

Aequs Limited, a Belagavi-based engineering-led, vertically integrated precision manufacturer, 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 Private Limited (Trustee of the Melligeri Private Family Foundation), a member of the Promoter Group, aggregating to approximately ₹650 crore.The issue is subject to shareholders’ approval and such other statutory and regulatory approvals as may be required, the firm said on Friday evening.Of the total issue size of approximately ₹650 crore, ₹325 crore will be payable upfront upon allotment of the warrants, representing 50% of the issue size, and twice the regulatory minimum. The balance will be payable upon exercise of the warrants. In accordance with applicable regulations, warrants may be exercised within 18 months from the date of allotment, according to a company communique.According to the company, the investment comes at an important point in Aequs’ growth journey, as the company advances multiple opportunities across its aerospace and consumer businesses. These opportunities require investment ahead of the revenue and cash they generate. 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.However, conversion of warrants into equity shares, by making payment of balance consideration, shall take place on or before December 31, 2027. 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. The company has received an investment commitment letter dated September 25, 2026, from the promoter to this effect.The issue price of ₹231.55 is the floor price determined under Regulation 164 of the SEBI Regulations, 2018 — the higher of the 90-trading-day and the 10-trading-day volume weighted average price of the company’s shares preceding the relevant date of September 22, 2026.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. 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 further said.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.” Published - September 26, 2026 12:27 am IST