Belagavi-based Aequs Ltd's board approved, on September 25, a preferential issue of up to 2,80,71,690 warrants — each convertible into one equity share of ₹10 face value — at ₹231.55 per warrant, aggregating approximately ₹650 crore.
The entire issue goes to Mellwood Trustee Services Pvt Ltd, trustee of the Melligeri Private Family Foundation, a promoter-group member. Unusually, ₹325 crore (50%) is payable upfront — twice the regulatory minimum — with the balance due on exercise, and a conversion deadline on or before December 31, 2027. The issue is subject to shareholder approval at an EGM on October 22, 2026.
Proceeds are earmarked for capacity expansion in the aerospace and consumer businesses — including a new Hosur facility — investment in subsidiaries and JVs, and support for the company's borrowing programme. The backdrop is strong: Aequs's aerospace order book has crossed $1 Bn, and the stock hit a new high of ₹286.05 on BSE on September 30 — up 136% since March 30, 2026.
The financing structure is shareholder-friendly by design: the promoter-group backing via the Melligeri Private Family Foundation shows insider conviction, and the ₹325 crore upfront payment — twice the regulatory minimum — front-loads capital for the expansion timeline. Conversion must be completed on or before December 31, 2027, giving the company a clear runway to deploy the funds.
The market has rewarded the strategy: Aequs stock touched a new high of ₹286.05 on BSE on September 30, up 136% since March 30, 2026 — a rally powered by the $1 Bn+ aerospace order book and now amplified by this capacity-expansion commitment.
Why it matters for founders
Aequs shows how deep-tech manufacturing scales on real order books: a $1 Bn backlog plus a promoter-funded ₹650 Cr expansion round, no VC involved. If you're building in aerospace, defence or precision manufacturing, this is the funding archetype to study — customers first, capacity second, and equity as a tool for scaling production, not proving demand.