Aequs shares rise up to 6% on Rs 660 crore capex budget for FY27

As per the latest business developments, Aequs shares rose up to 6 percent in Monday's market session after the precision engineering and contract manufacturing firm outlined a Rs 660 crore capital expenditure (capex) budget for FY27.

The firm plans to use fresh capital to backing its expansion strategy and expand its aerospace and consumer businesses by 2031, Aequs Executive Chairman Aravind Melligeri told CNBC-TV18 in an interview.

Melligeri stated the firm has scheduled a Rs 660 crore capex budget for FY27 and an upcoming Rs 800 crore debt raise. The firm additionally plans to enter the drones and defence assemblies segments.

Another fundraise is anticipated in FY28 to maintain the expansion momentum, he stated.

Earlier, Aequs stated its board had approved a Rs 650 crore equity infusion, which will be used to expand capacity in its aerospace and consumer businesses and backing its borrowing programme.

The equity infusion will be made through warrants by the promoter group, the firm stated.

Of the total offering size of approximately Rs 650 crore, Rs 325 crore will be payable upfront upon allotment of the warrants, representing 50 per cent of the offering size and twice the regulatory minimum.

The balance amount will be payable upon exercise of the warrants, it stated.

Upon full conversion of the warrants, the aggregate holding of the promoter and promoter group in the firm will gain from 59.09 per cent to 60.73 per cent, Aequs stated.