Aequs To Raise ₹650 Cr Via Preferential Issue To Bolster Manufacturing Capacity

Contract manufacturing company Aequs’ board has approved a fund raise of up to ₹650 Cr via a preferential issue of warrants to the promoter group, Mellwood Trustee Services Pvt Ltd. 

In a filing with the exchanges yesterday (September 25), the company said that its board has approved the issuance of 2.8 Cr warrants at an issue price of ₹231.55 per warrant. Of the total issue size, ₹325 Cr will be payable upfront upon allotment of the warrants, representing 50% of the issue size, and twice the regulatory minimum. The balance will be payable upon exercise of the warrants.

The promoter issued an investment commitment letter dated September 25, 2026 to the company, confirming its intention to subscribe to the warrants for cash consideration. On full conversion of the warrants, the aggregate holding of the promoter and promoter group will increase to 60.73% from 59.09%.

The issue is subject to the shareholders and regulatory approval. The company will seek shareholder approval via an EGM on October 22 (Thursday). 

The company plans to use the fresh capital to expand capacity across its aerospace and consumer businesses, including the development of its Hosur facility, investments in subsidiaries and joint ventures, and other general corporate purposes.

“The equity will also provide the base against which the Company raises its term borrowings for the expansion. The board has assessed the Company’s current equity requirement through FY28 and has decided to meet it through this issue. A broader capital raise will be considered as and when required by the company’s growth plans,” the company said.

Founded in 2006 by Aravind Melligeri, Aequs provides manufacturing services to enterprises. It initially started with catering to the aerospace industry and later diversified its offerings to other sectors such as toys and consumer durable goods and products. 

It counts the likes of Airbus, Boeing and Collins Aerospace among its clients.

Aequs is investing in building an aerospace engine component ecosystem in India. Its Hosur facility is expected to be operational next year, with shipments likely to begin by 2028.

Brokerage Nuvama Institutional Equities initiated coverage on the aerospace contract manufacturer with a ‘Buy’ rating and a 12-month target price of ₹444, implying an upside of over 90% from July 6 closing price.

The brokerage said Aequs’ $889 Mn order book provides strong revenue visibility, and projected a 42% revenue CAGR and an 84% EBITDA CAGR between FY26 and FY29.

On the financial front, Aequs reported a net loss of  ₹53.2 Cr in Q1 FY27, against a net profit of ₹3.6 Cr in the last year quarter. Operating revenue for the June quarter jumped 55% YoY to ₹395.6 Cr. 

The fresh fundraise comes almost a year after Aequs raised fresh capital via its initial public offering (IPO) in December 2025. The company’s  public offering comprised a fresh issue of shares worth up to ₹670 Cr and an offer for sale (OFS) of up to 2.03 Cr shares. 

Amicus Capital, the Dempo family trusts, and individual shareholders Ravindra Mariwala and Raman Subramanian, alongside promoter entities Aequs Manufacturing Investments and Melligeri Private Family Foundation, offloaded shares via the OFS.

Since listing, the company’s shares have more than doubled from the IPO price of ₹124. Shares of Aequs ended Friday’s trading session 1.38% higher at ₹246.20. 

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