Aequs proposes ₹650 crore promoter warrants for capacity expansion

Aequs has proposed a ₹650 crore preferential issue of convertible warrants to its promoter group, following board approval on September 25, 2026. Its stock-exchange disclosure makes the issue conditional on shareholder consent and the required statutory and regulatory approvals; it does not announce receipt of the full sum.

The proposed subscriber is Mellwood Trustee Services Private Limited, acting as trustee of the Melligeri Private Family Foundation. According to the board filing, Aequs would issue up to 28,071,690 warrants at ₹231.55 each, with each warrant convertible into an equity share.

A minimum ₹325 crore is due at subscription and allotment, with the balance due when the warrants are exercised. The company’s accompanying release records a promoter commitment to pay the balance irrespective of the share price at exercise, with conversion due by December 31, 2027.

Aequs intends to use the proceeds for capacity expansion across its aerospace and consumer businesses, including its Hosur facility, investments in subsidiaries and joint ventures, and general corporate purposes. The release also describes the equity as a base for further term borrowing. It does not identify a separate allocation to space manufacturing.

The issuer has manufacturing operations in India and a corporate office in Belagavi, Karnataka. Its space connection is documented in The Economic Times’ February 2015 report that Aequs acquired Simulations Design, a Bengaluru manufacturer of satellite and spacecraft components with ISRO programme experience.

The next approval step is an extraordinary general meeting scheduled for October 22, 2026, by video conference. Until the proposed issue clears its conditions and allotment occurs, the board decision remains an approved financing proposal.