Aequs board approves ₹650 cr equity infusion for capacity expansion
Of the total issue size of approximately ₹650 crore, ₹325 crore will be payable upfront upon allotment of the warrants, representing 50% of the issue size and twice the regulatory minimum
Aequs, an engineering and contract manufacturing company, has received approval from its board for a ₹650 crore equity infusion. This infusion will be utilized for capacity expansion in aerospace and consumer sectors, along with supporting the company's borrowing program. The funds will be provided through the issuance of warrants by the promoter group.
Of the total issue, ₹325 crore will be paid upfront upon the allotment of the warrants, which amounts to 50% of the issue size and twice the regulatory minimum. The remaining ₹325 crore will be payable upon the exercise of the warrants. Following the conversion of the warrants, the promoter and promoter group's aggregate holding in the company will rise from 59.09% to 60.73%.
Mellwood Trustee Services Pvt Ltd, acting as the trustee for the Melligeri Private Family Foundation, is the promoter group member for Aequs Ltd. The issue requires shareholder approval and other clearances before it can proceed, as the company seeks shareholders' nod at an upcoming Extraordinary General Meeting on October 22.
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