Aequs Board Clears ₹650 Crore Capital Infusion
Precision manufacturing company Aequs Limited has approved a proposed capital infusion of approximately ₹650 crore as it prepares to expand manufacturing capacity across its aerospace and consumer businesses.
At its meeting on September 25, 2026, the board approved the preferential issue of up to 2,80,71,690 warrants, each convertible into one fully paid-up equity share with a face value of ₹10.
The warrants are proposed to be issued to Mellwood Trustee Services Private Limited, acting as trustee of the Melligeri Private Family Foundation and belonging to Aequs’ promoter group.
Importantly, the ₹650 crore has not yet been fully raised. The board has approved the proposal, but completion remains subject to shareholder and other applicable statutory and regulatory approvals.
₹325 Crore to Be Paid Upfront
The financing structure is notable because the promoter has committed to paying 50% of the total issue size upfront.
Of the approximately ₹650 crore issue, ₹325 crore will be payable when the warrants are allotted. The remaining amount will become payable when the warrants are exercised and converted into equity shares.
According to the company, the 50% upfront payment is twice the regulatory minimum.
Under applicable regulations, the warrants can be exercised within 18 months from the date of allotment. However, Aequs said conversion into equity shares after payment of the balance consideration will take place on or before December 31, 2027.
The promoter has also provided an investment commitment to pay the remaining consideration in full irrespective of Aequs’ prevailing market price when the warrants are exercised, according to the company announcement.
Where Will Aequs Use the ₹650 Crore?
The proposed capital infusion is tied directly to Aequs’ manufacturing expansion strategy rather than being described merely as a general fundraising exercise.
The company said proceeds are intended to finance capacity expansion in its aerospace and consumer businesses, including development of its Hosur facility.
Funds are also expected to support investments in subsidiaries and joint ventures connected with the expansion, along with general corporate purposes.
Another important part of the strategy is leverage.
Aequs said the fresh equity would provide a base against which the company can raise term borrowings required for its expansion programme. The board has assessed the company's equity requirements through FY28 and decided to address the current requirement through this preferential issue.
The company has left open the possibility of considering a broader capital raise later if its growth plans require additional funding.
Promoter Holding Could Rise to 60.73%
Full conversion of the warrants would also alter Aequs’ ownership structure.
The aggregate shareholding of the promoter and promoter group is expected to increase from 59.09% to 60.73% after all the proposed warrants are converted into equity shares.
This means the transaction is not only a capital infusion but also represents an additional financial commitment from the promoter group to the company’s expansion programme.
Why Aequs Is Expanding Manufacturing Capacity
The fundraise comes as Aequs is scaling both its aerospace and consumer manufacturing operations.
According to Aequs’ FY26 results, consolidated revenue increased 33% year-on-year to ₹12,304 million (₹1,230.4 crore), while EBITDA grew 43% year-on-year.
Its aerospace business generated ₹10,464 million (₹1,046.4 crore) in FY26 revenue, representing growth of 27% year-on-year.
The company also reported an aerospace order book of $889 million and said its aerospace SKU portfolio had expanded by 26% year-on-year.
Meanwhile, Aequs said revenue from its consumer business grew 84% during FY26 as programmes moved towards larger-scale production and revenue recognition.
These figures provide important context for the ₹650 crore proposal: Aequs is raising promoter capital while both of its principal manufacturing segments are in expansion mode.
Capacity Utilisation Shows Room for Expansion
Aequs’ FY26 disclosures also provide another clue to the company’s investment strategy.
The company reported capacity utilisation of approximately 62% in aerospace, including around 70% for its India operations, while consumer-business capacity utilisation stood at about 23%.
Aequs has been building a vertically integrated manufacturing model rather than focusing on a single manufacturing process.
The company describes itself as having a significant presence in global aerospace and consumer manufacturing value chains, converting customers’ technical specifications and concepts into manufactured products.
Financial Express reported that Aequs supplies global aerospace OEMs and system integrators including Airbus, Boeing, Safran and Collins Aerospace.
Larger Expansion Plans Already Underway
The ₹650 crore promoter infusion also fits into a much larger investment roadmap.
In its FY26 results, Aequs disclosed strategic investment announcements including a ₹1,900 crore memorandum of understanding with Tamil Nadu for an integrated aerospace ecosystem and a ₹2,856 crore MoU with Karnataka covering expansion across business segments.
Executive Chairman and CEO Aravind Melligeri said while announcing the FY26 results that the company was deepening its manufacturing presence and expanding its aerospace portfolio towards more complex programmes and potentially higher margins.
Those MoUs represent proposed investment plans rather than the same thing as capital already deployed, an important distinction when assessing Aequs’ overall expansion programme.
What Happens Next?
The preferential issue cannot be treated as completed yet.
Aequs will seek shareholder approval for the proposed warrants, while the transaction is also subject to other applicable statutory and regulatory approvals.
An Extraordinary General Meeting is scheduled for October 22, 2026 to seek shareholder approval for the proposal.
If approved and fully converted, the transaction would provide Aequs with approximately ₹650 crore of additional promoter-backed equity while increasing promoter-group ownership to 60.73%.
The larger significance lies in how that capital will be used: Aequs is combining fresh equity with prospective term borrowing to finance a broader manufacturing build-out across aerospace and consumer products.
JantaScope Editorial Note: This article has been independently written using Aequs’ corporate disclosures and additional reporting cited above. Financial figures and proposed investments have been distinguished from completed transactions where relevant. © 2026 JantaScope. All rights reserved.
