Aequs raises funds to accelerate aerospace business expansion, targets $450 million capex

Aerospace components manufacturer Aequs is accelerating its capital expenditure plans, securing a ₹650 crore preferential warrant issue to fund equity contributions for an upcoming ₹800 crore debt raise this year. The fresh capital will support the company's 2031 growth strategy, which envisions a total capex of $450 million to scale operations four to six times above 2026 levels.

Executive Chairman and Chief Executive Officer Aravind Melligeri stated that the rapid fundraise, coming within a year of the company's initial public offering, provides management with clear visibility for investments over the next 18 months. Regulatory constraints had limited the deployment of IPO proceeds toward capital expenditure to just ₹60 crore to ₹70 crore, with the remainder used to pay down debt.

The newly raised equity will leverage the balance sheet by acting as a contribution toward term loans. Aequs expects to raise approximately ₹800 crore in debt by the end of this year, with deployment scheduled through the middle of next year.

For the current year, the company has committed ₹60 crore in capex, initially split 60% toward the consumer segment and 40% toward aerospace. Accelerating aerospace projects in the second half of the year may shift that balance further toward the aviation side.

Management opted for a warrant issue over a qualified institutional placement to avoid time-consuming roadshows while executing current commitments.

"This gives clarity to management and everybody that there is money available necessary to support all of those requirements," Melligeri added. To meet the broader $150 million to $200 million equity requirement outlined in the 2031 plan, the company will likely explore qualified institutional placements (QIPs) around calendar year 2028.

Order momentum is picking up, particularly in the Hosur aero engine and landing gear ecosystem. Following the wheel order secured earlier in the year, Aequs is engaged in strategic discussions with major engine and landing gear manufacturers.

On the defence front, the company is expanding activities beyond its Ajna Aerospace joint venture (JV) for drones, collaborating with Hindustan Aeronautics (HAL) and other defence organisations on assembly programs expected to yield new projects in the coming quarters.

Watch the full conversation here

Bengaluru-based Aequs shares have gained nearly 114% over the past six months, while the company’s market capitalisation stands at around ₹17,370.24 crore. Aequs was listed in December 2025.

Catch all the latest updates from the stock market here