Of the total issue size, ₹325 crore will be payable upfront upon allotment of the warrants, representing 50% of the issue size and twice the regulatory minimum. The balance amount will be payable upon exercise of the warrants. The issue is subject to shareholders’ approval and other applicable statutory and regulatory approvals.
The warrants are priced at ₹231.55 each, which is the floor price determined under Regulation 164 of the Securities and Exchange Board of India (SEBI) (Issue of Capital and Disclosure Requirements) Regulations, 2018.
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The floor price is based on the higher of the 90-trading-day and 10-trading-day volume-weighted average price of Aequs shares preceding the relevant date of September 22, 2026.
The warrants may be exercised within 18 months from the date of allotment. However, conversion into equity shares by payment of the balance consideration will take place on or before December 31, 2027.
The promoter has undertaken to pay the balance consideration in full, irrespective of Aequs’ share price at the time of exercise. The company has received an investment commitment letter dated September 25, 2026, from the promoter to this effect.
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On full conversion of the warrants, the aggregate holding of the promoter and promoter group in Aequs will increase from 59.09% to 60.73%.
Aequs said the proceeds will fund capacity expansion across its aerospace and consumer businesses, including development of the Hosur facility, investments in subsidiaries and joint ventures supporting the expansion, and general corporate purposes.The equity infusion will also provide the base against which Aequs raises term borrowings for the expansion. The board has assessed the company’s equity requirement through FY28 and decided to meet it through the issue.
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A broader capital raise will be considered as and when required by the company’s growth plans. The investment also aligns the promoter group’s economic commitment with Aequs’ long-term growth plans and capital requirements.
Aravind Melligeri, Executive Chairman and 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 the SEBI pricing formula and paying half of it upfront — that is the measure of our confidence in what this business can deliver.”
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Shares of Aequs Ltd ended at ₹246.00, up by ₹3.15, or 1.30%, on the BSE.