Contract manufacturing company Aequs has cleared a fresh capital raise of up to Rs 650 crore through a preferential issue of warrants to its promoter group, a move that underscores the company's push to scale up manufacturing capacity across its aerospace and consumer businesses.
In a filing to the exchanges on September 25, the company said its board approved the issuance of 2.8 crore warrants at an issue price of Rs 231.55 per warrant to Mellwood Trustee Services Pvt Ltd, a promoter group entity. Of the total issue size, Rs 325 crore will be payable upfront at the time of allotment, representing 50% of the total consideration and twice the regulatory minimum typically required for such instruments. The remaining amount will be payable when the warrants are exercised.
The promoter has already submitted an investment commitment letter dated September 25, 2026, confirming its intention to subscribe to the warrants for cash consideration. Once the warrants are fully converted into equity, the aggregate holding of the promoter and promoter group will rise to 60.73% from 59.09%, strengthening promoter control in a company that is still in an expansion-heavy phase.
The issue remains subject to shareholder and regulatory approvals. Aequs said it will seek approval from shareholders at an extraordinary general meeting scheduled for October 22. The company has framed the fundraise as a strategic step to meet its equity requirements through FY28, while also creating the capital base needed to support future term borrowings for expansion.
"The equity will also provide the base against which the Company raises its term borrowings for the expansion. The board has assessed the Company's current equity requirement through FY28 and has decided to meet it through this issue. A broader capital raise will be considered as and when required by the company's growth plans," the company said.
The fresh capital is expected to be deployed across several priorities, including expansion of capacity in aerospace and consumer segments, development of the company's Hosur facility, investments in subsidiaries and joint ventures, and general corporate purposes. The Hosur project is particularly significant because Aequs is building out an aerospace engine component ecosystem in India, a segment that requires long gestation periods, heavy capital investment and deep integration with global supply chains.
Founded in 2006 by Aravind Melligeri, Aequs began as an aerospace-focused manufacturer before broadening into toys, consumer durable goods and other product categories. The company counts Airbus, Boeing and Collins Aerospace among its customers, giving it exposure to some of the world's largest aerospace supply chains. Its business model is built around contract manufacturing, where scale, precision and reliability are critical to winning and retaining long-term clients.
The company's growth ambitions have already drawn attention from the market. Brokerage Nuvama Institutional Equities recently initiated coverage on Aequs with a Buy rating and a 12-month target price of Rs 444, implying an upside of more than 90% from the July 6 closing price. Nuvama pointed to Aequs' $889 million order book as a strong indicator of revenue visibility and projected a 42% revenue compound annual growth rate and an 84% EBITDA compound annual growth rate between FY26 and FY29.
The company's latest financial performance shows both momentum and volatility typical of a scaling manufacturer. In the June quarter, Aequs reported operating revenue of Rs 395.6 crore, up 55% year-on-year, but posted a net loss of Rs 53.2 crore compared with a net profit of Rs 3.6 crore in the same quarter last year. The numbers suggest that while demand is rising sharply, the company is still absorbing the cost of expansion and investment.
The fundraise comes almost a year after Aequs' initial public offering in December 2025, which brought in fresh capital through a mix of primary issuance and an offer for sale. The IPO comprised a fresh issue of shares worth up to Rs 670 crore and an OFS of up to 2.03 crore shares. Shares were sold by Amicus Capital, the Dempo family trusts, individual shareholders Ravindra Mariwala and Raman Subramanian, as well as promoter entities Aequs Manufacturing Investments and Melligeri Private Family Foundation.
Since listing, Aequs' stock has more than doubled from the IPO price of Rs 124, reflecting investor appetite for India's manufacturing and aerospace supply-chain story. On Friday, the shares ended 1.38% higher at Rs 246.20, suggesting the market continues to track the company's expansion plans closely even as it leans on promoter capital to fund the next phase of growth.