Aequs (BSE/NSE) announced a ₹650 crore preferential warrant, immediately boosting its capital base for an ₹800 crore debt issuance slated for year‑end. The move comes after the IPO’s regulatory split, which capped capex allocation to just ₹60–70 crore, leaving the bulk of proceeds for debt repayment.
The warrant provides equity backing, allowing the company to frame the debt at favorable terms. CEO Aravind Melligeri noted the swift raise gives management “clear visibility for investments over the next 18 months,” a relief after the IPO’s limited deployment window.
Aequs has earmarked ₹60 crore for current‑year capex, split 60% consumer and 40% aerospace. The plan targets a 4‑to‑6× jump in aerospace output by 2031, with a total capex of $450 million. The shift toward aviation is expected to deepen in the second half of the year.
Order momentum is heating up, especially in the Hosur aero‑engine and landing‑gear ecosystem. Aequs secured a wheel order earlier this year and is in talks with major engine and landing‑gear makers. On the defence side, the company is expanding beyond its Ajna Aerospace joint venture, partnering with Hindustan Aeronautics for new assembly projects.
Looking ahead, Aequs plans to raise the remaining ₹800 crore debt by year‑end and will likely pursue a ₹150–200 million equity raise in 2028 via a QIP. Shares, which have risen 114% in six months, remain attractive for investors eyeing the company’s long‑term capex trajectory.