Karnataka: The Board of Directors of Aequs Limited has approved the preferential issue of up to 2,80,71,690 warrants to Mellwood Trustee Services Private Limited, Trustee of the Melligeri Private Family Foundation and a member of the Promoter Group, for approximately ₹650 crore.
Of the total amount, ₹325 crore, or 50 per cent, will be paid upfront on allotment. The balance will be payable when the warrants are converted into equity shares. The warrants can be exercised within 18 months of allotment, with conversion to be completed by December 31, 2027.
The issue price of ₹231.55 per warrant is the floor price determined under applicable SEBI regulations. Following full conversion, the Promoter and Promoter Group’s holding will increase from 59.09 per cent to 60.73 per cent.
The proceeds will support capacity expansion across Aequs’ aerospace and consumer businesses, including the development of its Hosur facility, investments in subsidiaries and joint ventures, and general corporate purposes. The equity will also support the Company’s planned term borrowings.
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. 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.”
An Extraordinary General Meeting will be held on October 22, 2026, through video conferencing to seek shareholders’ approval.
