Belagavi firm Aequs gets approval for ₹650-crore equity infusion

Aequs Limited, a Belagavi-based engineering-led, vertically integrated precision manufacturer, has approved the preferential issue of up to 2,80,71,690 warrants, each convertible into one fully paid-up equity share of face value ₹10, to Mellwood Trustee Services Private Limited (Trustee of the Melligeri Private Family Foundation), a member of the Promoter Group, aggregating to approximately ₹650 crore.

The issue is subject to shareholders’ approval and such other statutory and regulatory approvals as may be required, the firm said on Friday evening.

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. The balance will be payable upon exercise of the warrants. In accordance with applicable regulations, warrants may be exercised within 18 months from the date of allotment, according to a company communique.