Aerospace-focused contract manufacturer Aequs to raise Rs.650-Cr via pref issue

Belagavi, Karnataka-based precision-engineering-focused contract manufacturing company Aequs has received board approval to raise up to INR 650-Cr through a preferential issue of warrants to its promoter group entity, Mellwood Trustee Services. The transaction involves the issuance of 2.8-Cr warrants at INR 231.55 per warrant. The company will receive INR 325-Cr upfront upon allotment, with the remainder payable upon the exercise of the warrants.Founded in 2006 by Aravind Melligeri, Aequs provides manufacturing services to enterprises across the aerospace, toy, and consumer durable sectors. The company intends to use the proceeds to set up an INR 1,900-crore aerospace manufacturing facility at the SIPCOT Industrial Park in Shoolagiri near Hosur, Tamil Nadu. The capital will also serve as a base for securing additional term borrowings to support expansion plans through fiscal year 2028.Upon the full conversion of the warrants, the aggregate stake held by the promoter and promoter group in Aequs will increase from 59.09% to 60.73%.