Board approves ₹650 crore preferential warrant issue to promoter group at ₹231.55; 50% upfront

Board approved a preferential issue of up to 2,80,71,690 warrants to promoter group entity Mellwood Trustee Services, aggregating ~₹650 crore at ₹231.55 per warrant.

Fri 25 Sep 2026

Warrant Issue Size

₹650 crore

Number of Warrants

2,80,71,690 warrants

Price per Warrant

₹231.55

Upfront Payment

₹325 crore (50%)

Promoter Holding Post Conversion

60.73% (from 59.09%)

What was approved

The Board of Aequs Limited approved a preferential issue of up to 2,80,71,690 warrants, each convertible into one fully paid-up equity share of face value ₹10, to Mellwood Trustee Services Private Limited (Trustee of the Melligeri Private Family Foundation), a member of the Promoter Group. The issue aggregates to approximately ₹650 crore.

Payment structure

• ₹325 crore, being 50 per cent of the issue size, is payable upfront on allotment — described as twice the regulatory minimum.
• The balance is payable on exercise of the warrants.
• Warrants may be exercised within 18 months from allotment, but conversion into equity shares by paying the balance is to take place on or before December 31, 2027.
• The Promoter has undertaken to pay the balance in full irrespective of the market price at the time of exercise, backed by an investment commitment letter dated September 25, 2026.

Pricing

The issue price of ₹231.55 is the floor price under Regulation 164 of SEBI ICDR Regulations, 2018 — the higher of the 90-trading-day and 10-trading-day volume weighted average price preceding the relevant date of September 22, 2026.

Shareholding effect

On full conversion, the aggregate holding of the Promoter and Promoter Group rises from 59.09 per cent to 60.73 per cent. Existing public shareholders would see their proportionate stake diluted as new shares are issued.

Use of proceeds

• Capacity expansion across aerospace and consumer businesses, including development of the Hosur facility.
• Investment in subsidiaries and joint ventures supporting that expansion.
• General corporate purposes.
• The equity also provides the base against which the Company raises term borrowings for the expansion.

The Board has assessed the Company's equity requirement through FY28 and decided to meet it through this issue; a broader capital raise will be considered as and when required.

Approvals and timeline

The issue is subject to shareholders' approval and other statutory and regulatory approvals. An Extraordinary General Meeting is scheduled for Thursday, October 22, 2026, through video conferencing. Detailed terms will be made available to shareholders and shared with the exchanges.

Business context cited

The Company describes a portfolio of 5,740 qualified parts in aerospace, Tier-1 supply to OEMs such as Airbus, Boeing, Safran and Collins Aerospace, and annual machining and molding capacity of approximately 4.78 million hours per annum based on Q1FY27 annualised figures.

How investors may read it

Promoter money coming in at the SEBI floor price with half paid upfront and a written commitment to pay the balance is generally seen as a signal of promoter confidence and gives the company committed funding for expansion. On the other side, it adds new shares, mildly increasing promoter holding and diluting other shareholders, and the capital is being raised ahead of the revenue the expansion is expected to generate.

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