Aequs board approved a ₹650 cr warrant issue to a promoter group entity to fund capacity expansion in its aerospace and consumer units.

The buyer is Mellwood Trustee Services Private Limited, a promoter group member that acts as trustee of the Melligeri Private Family Foundation. It will pay Rs 231.55 per warrant.

That price follows SEBI’s formula, which uses average trading prices before 22 September. Half the money, Rs 325 crore, comes upfront when the warrants are allotted.

Aequs said that is twice the regulatory minimum. The rest is due when the warrants are exercised, and the promoter has committed to pay it in full whatever the share price is at that time.

Warrants can be exercised within 18 months of allotment. Conversion must finish by 31 December 2027. The money will go towards capacity expansion in aerospace and consumer businesses, including the Hosur facility.

Some will flow to subsidiaries and joint ventures that support the expansion, and some to general corporate needs. The fresh equity will also help Aequs raise term loans.

Executive Chairman and CEO Aravind Melligeri said the company is winning programmes faster than planned, and such wins need spending before revenue arrives.

The board has looked at equity needs through FY28 and chose this route. If all warrants convert, the promoter and promoter group stake will rise from 59.09% to 60.73%.

The plan still needs shareholder approval, along with any other regulatory clearances. Shareholders will vote at an Extraordinary General Meeting on 22 October, held over video conferencing.

Aequs makes precision parts within a single special economic zone. In aerospace, it supplies Airbus, Boeing, Safran and Collins Aerospace as a Tier-1 vendor, and its consumer arm covers electronics, plastics and toys.

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