Aequs To Raise ₹650 Cr Via Preferential Issue To Bolster Manufacturing Capacity

Contract manufacturing firm Aequs has authorized a fund raise of up to ₹650 crore through a preferential issue of warrants to its promoter group, Mellwood Trustee Services Pvt Ltd. The company disclosed this approval in a filing with the stock exchanges on September 25. The 2.8 crore warrants, priced at ₹231.55 each, will be issued to the promoter group, comprising 50% of the total issue size, with the remainder due on exercise.

Mellwood Trustee Services recently signed an investment commitment letter to subscribe to the warrants for cash. This capital infusion will boost Aequs's equity stake and bolster its manufacturing capacity, aimed at expanding its aerospace and consumer businesses. The company seeks shareholder approval via an Extraordinary General Meeting (EGM) on October 22.

Aequs, founded in 2006 by Aravind Melligeri, provides manufacturing services to various industries, including aerospace, toys, and consumer durables. The firm collaborates with global clients like Airbus, Boeing, and Collins Aerospace. Aequs is establishing an aerospace engine component ecosystem in India, with its Hosur facility set to become operational next year, commencing shipments by 2028.

Brokerage Nuvama Institutional Equities rated Aequs 'Buy' with a 12-month target price of ₹444, indicating a potential upside of over 90% from its July 6 closing price. The company reported a net loss of ₹53.2 crore in Q1 FY27, contrasted with a net profit of ₹3.6 crore in the same quarter of the previous year. Revenue for the June quarter surged 55% YoY to ₹395.6 crore.

This preferential issue marks a year since Aequs raised capital via an IPO in December 2025, issuing shares worth up to ₹670 crore and shares available for sale amounting to 2.03 crore. Since the IPO, Aequs shares have more than doubled from the IPO price of ₹124, closing at ₹246.20 on Friday.