Business
Aequs board clears Rs 650 crore equity infusion
The Hindu BusinessLine··7h ago
Aequs said its board approved a Rs 650 crore equity infusion through promoter-group warrants. Rs 325 crore is payable upfront on allotment, equal to half the issue size. Proceeds will expand aerospace and consumer capacity, including the Hosur facility, and support borrowing. Shareholders will vote on the issue at an EGM set for October 22.
Prism
What It Means For You
- The issue still needs shareholder approval and other clearances.
- On full conversion, promoter holding would rise from 59.09 percent to 60.73 percent.
- Warrant conversion payment is set to complete on or before December 31, 2027.
What's Happening
- Up to 2,80,71,690 warrants are proposed, each convertible into one Rs 10 face-value share.
- Mellwood Trustee Services Pvt Ltd is the allottee for the Melligeri Private Family Foundation.
- Executive Chairman Aravind Melligeri said the capital will fund capacity ahead of revenue.
How the money is split
- Half the issue size is due upfront, twice the regulatory minimum cited by the company.
- The balance is payable when warrants are exercised.
- Aequs said the board sized equity needs through FY28 with this issue.
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