Aequs rallies 5%, trades higher for fourth straight day; here's why

The board of directors of Aequs on September 25, 2026, approved the preferential issue of up to 28.07 million warrants, to the Promoter Group, aggregating approximately ₹650 crore.

Aequs share price movement

 

Aequs share price hit a new high of ₹286.05, surging 5 per cent on the BSE in Wednesday’s intraday deals. The stock of the aerospace & defence company quoted higher for the fourth straight trading day, soaring 18 per cent during the period, after its board approved a ₹650 crore equity infusion through warrants by the promoter group.

 

The stock surpassed its previous high of ₹274.60 touched on July 9, 2026. In the past six months, thus far in the financial year 2026-27, the market price of Aequs zoomed 136 per cent from levels of ₹121 on March 30, 2026 on the BSE.

 

 

At 12:03 PM on Wednesday, Aequs quoted 3.4 per cent higher at ₹280.75, as compared to a 0.42 per cent rise in the BSE Sensex. A combined 8 million shares changed hands on the NSE and BSE.

 

Aequs board nods for ₹650 cr equity infusion by Promoter Group

 

The board of directors of Aequs on September 25, 2026, approved the preferential issue of up to 28.07 million 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 company will issue shares at price of ₹231.55 per share. The issue is subject to the shareholders’ approval and other statutory and regulatory approvals as may be required.

 

Of the total issue size of approximately ₹650 crore, ₹325 crore will be payable upfront upon allotment of the warrants, representing 50 per cent 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. However, conversion of warrants into equity shares, by making payment of balance consideration, shall take place on or before December 31, 2027, the company said.

 

On full conversion of the warrants, the aggregate holding of the Promoter and Promoter Group in the company will increase from 59.09 per cent to 60.73 per cent.

 

The proceeds will fund capacity expansion across the aerospace and consumer businesses, including the development of the Hosur facility, investment in subsidiaries and joint ventures supporting that expansion, and general corporate purposes. 

 

The equity will also provide the base against which the company raises its term borrowings for the expansion. The board assessed the company’s current equity requirement through FY28 and decided to meet it through this issue, Aequs said.

 

Aequs – Outlook

 

Aequs specialises in precision machining for AeroSystems, Aerostructures, landing gear and engine components, forging, surface treatment, aerostructure assembly, testing and prototyping of components.

 

The company’s managing director reiterated robust growth guidance across its aerospace and consumer segments. For FY27, aerospace revenue growth is pegged at 25-30 per cent with its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin sustaining above 20 per cent (vs. 40 per cent revenue growth and 23 per cent EBITDA margin reported in Q1FY27).

 

A strong $1b+ order book (up 13 per cent QoQ) in the Aerospace segment supports a 25-30 per cent revenue compound annual growth rate (CAGR) potential for the next 5 years. Moreover, management expects regular additions to the order book, analysts at Motilal Oswal Financial Services said in a CEO Track report.

 

Consumer segment is expected to see exponential growth and a narrowing EBITDA loss. Management sees the segment revenue growing 10-18x over the next 5 years driven by volume ramp-up. It expects EBITDA breakeven by Q4FY27 on ramp-up in capacity utilization to 40-50 per cent, and a positive profit after tax in FY28/FY29.

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