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Aequs Board Approves ’650 Crore Preferential Issue to Promoter Group
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CNBC TV18•25-09-2026, 19:37
Aequs Board Approves ’650 Crore Preferential Issue to Promoter Group
- •Aequs Ltd's board approved a preferential issue of up to 2,80,71,690 warrants to Mellwood Trustee Services Private Limited, a promoter group member, for approximately ’650 crore.
- •The issue requires an upfront payment of ’325 crore, representing 50% of the total, with the balance due upon warrant exercise, subject to shareholder and regulatory approvals.
- •Warrants are priced at ’231.55 each, based on SEBI regulations, and can be exercised within 18 months, with conversion to equity shares by December 31, 2027.
- •The promoter has committed to paying the full balance consideration regardless of Aequs' share price at exercise, increasing the promoter group's holding from 59.09% to 60.73% upon full conversion.
- •Proceeds will fund capacity expansion in aerospace and consumer businesses, including the Hosur facility, investments in subsidiaries, and general corporate purposes, providing an equity base for future term borrowings.
Key Questions Answered
The board of Aequs Ltd approved a preferential issue of up to 2,80,71,690 warrants to Mellwood Trustee Services Private Limited for approximately ₹650 crore.
Of the total issue size, ₹325 crore will be payable upfront upon allotment of the warrants, representing 50% of the total size and twice the regulatory minimum.
Upon full conversion of the warrants, the aggregate holding of the promoter and promoter group in Aequs will increase from 59.09% to 60.73%.
