Aequs Limited, a precision manufacturer based in Belagavi, has approved a preferential issue of equity instruments worth approximately ₹650 crore to Mellwood Trustee Services Private Limited, a member of its Promoter Group. The company announced on Friday evening that the issuance of up to 2,80,71,690 instruments, each convertible into one fully paid-up equity share of ₹10 face value, is subject to shareholder and regulatory approvals. The move aims to fund capacity expansion in its aerospace and consumer businesses, including the development of its Hosur facility, while supporting the company’s borrowing programme.
Of the total issue size, ₹325 crore, or 50 percent, is payable upfront upon allotment, which is twice the regulatory minimum, with the balance due upon exercise. The instruments must be exercised within 18 months of allotment, and their conversion into equity shares must occur on or before December 31, 2027. The promoter has committed to paying the full balance consideration regardless of the market price at the time of exercise, as outlined in an investment commitment letter dated September 25, 2026. The issue price of ₹231.55 was determined as the floor price under Regulation 164 of the SEBI Regulations, 2018, based on the higher of the 90-trading-day and 10-trading-day volume-weighted average prices preceding September 22, 2026.
Upon full conversion, the aggregate holding of the Promoter and Promoter Group will rise from 59.09 percent to 60.73 percent. The Board has assessed the company’s equity requirements through FY28 and decided to meet them through this issue, with broader capital raises to be considered as needed. Aravind Melligeri, Executive Chairman and CEO of Aequs Limited, stated, “We are winning programmes faster than we had planned for, and those wins need investment ahead of the revenue they bring.”
