Contract manufacturing company Aequs has approved a fund raise of up to ₹650 crore through a preferential issue of warrants to its promoter group, Mellwood Trustee Services Pvt Ltd, the company disclosed on September 25. The board approved issuing 2.8 crore warrants at ₹231.55 each, with ₹325 crore payable upfront. This move aims to bolster manufacturing capacity in aerospace and consumer sectors.
According to the filing with exchanges, 50% of the issue size will be paid upon allotment, which is twice the regulatory minimum. The promoter group issued an investment commitment letter on September 25 confirming its intention to subscribe to the warrants. Upon full conversion, the promoter holding will rise to 60.73% from 59.09%. The issuance is subject to shareholder and regulatory approvals, with an extraordinary general meeting scheduled for October 22 to seek shareholder consent.
The fresh capital will fund expansion at Aequs’ Hosur facility, investments in subsidiaries and joint ventures, and other corporate purposes. The equity raise will also serve as a base for raising term borrowings to support growth through fiscal year 2028. This funding round reflects Aequs’ strategic focus on scaling its aerospace and consumer manufacturing capabilities amid growing demand in these sectors.
The company’s board has assessed equity requirements through FY28 and decided to meet them through this preferential issue. The shareholder meeting on October 22 will be a key milestone for finalizing the fund raise and enabling the planned capacity expansion at Aequs’ manufacturing units.