The Board of Directors of aequs approved the Scheme of Amalgamation between three wholly owned subsidiaries and the company at a meeting held on April 23, 2026. The subsidiaries being amalgamated are AeroStructures Manufacturing India Private Limited, Aequs Engineered Plastics Private Limited, and Aequs Force Consumer Products Private Limited. The amalgamation will be implemented under the provisions of Section 233 of the Companies Act, 2013, subject to the approval of shareholders and applicable authorities.

Financial Details of Entities

The financial details of the transferor companies and the transferee company as on March 31, 2025, are as follows:

Business Activities

Aequs Limited, incorporated on March 27, 2000, is engaged in the manufacturing of machined parts for aerospace and other engineering sectors. AeroStructures Manufacturing India Private Limited operates in the machining of parts and manufacturing for the aerospace sector. Aequs Engineered Plastics Private Limited is involved in the manufacturing of plastic products, automobile parts, and toys. Aequs Force Consumer Products Private Limited focuses on the manufacturing of consumer products and toys.

Rationale and Benefits

The amalgamation aims to combine businesses and streamline the management structure. The consolidation is expected to lead to synergies of operations and create a stronger capital and financial base for future growth. Key benefits include greater integration and financial strength, improved operational leverage and cash management efficiency, and cost savings through synergies achieved through joint operational efforts, rationalization, and standardization of business processes. The scheme also simplifies the group structure by eliminating multiple companies and reducing managerial overlap.

Transaction Structure

The transaction does not fall within the ambit of related party transactions under Regulation 23(5) of SEBI Listing Regulations, as it involves the holding company and its wholly owned subsidiaries. Upon the scheme becoming effective, there shall be no issue of shares by the transferee company, and investments in the equity shares of the transferor companies will be cancelled. No change will occur in the shareholding pattern of the listed company post-amalgamation. The scheme does not involve any corporate debt restructuring.

Aequs Limited has submitted its Monitoring Agency Reports for the quarter ended March 31, 2026, to the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The reports, issued by CARE Ratings Limited, cover the utilization of proceeds from both the Pre-Initial Public Offer Placement and the Initial Public Offer. The Monitoring Agency confirmed that there is no material deviation in the utilization of proceeds as stated in the objects of the issue.

Pre-IPO Offer Utilization

The Pre-IPO offer, conducted from November 5, 2025, to November 10, 2025, raised ₹144.0 crore through the issuance of 11,615,713 equity shares. The funds were allocated across four main categories: repayment of borrowings, capital expenditure, funding inorganic growth, and issue expenses. As of March 31, 2026, ₹124.89 crore had been utilized, leaving ₹19.11 crore unutilized.

The unutilized proceeds of ₹19.11 crore are deployed in fixed deposits with Axis Bank (₹5.00 crore), cash credit accounts of subsidiaries including Aequs Toys Private Limited (₹13.41 crore) and Aequs Engineered Plastics Private Limited (₹0.37 crore), and the monitoring account maintained with HDFC Bank (₹0.33 crore).

IPO Proceeds Utilization

The Initial Public Offer, conducted from December 3, 2025, to December 5, 2025, raised ₹670.0 crore through the issuance of 54,047,958 equity shares. The proceeds were allocated towards repayment of borrowings, capital expenditure, funding inorganic growth, and issue expenses. As of March 31, 2026, ₹481.32 crore had been utilized, with ₹188.68 crore remaining unutilized.

The unutilized proceeds of ₹188.68 crore are deployed in fixed deposits created by Aequs Limited with HDFC Bank (₹86.62 crore), by subsidiary ASMIPL with Axis Bank (₹45.62 crore), and by subsidiary ACPPL with HDFC Bank (₹35.00 crore). Additionally, ₹0.59 crore is maintained in the HDFC account of Aequs Toys Private Limited, ₹0.30 crore in the monitoring account, and ₹20.56 crore in the IPO bank account proposed to be used for offer expenses.

Key Implementation Details

The repayment of borrowings for both the company and its subsidiaries has been completed as per the offer document timeline. For capital expenditure, ₹17.09 crore has been utilized for the purchase of CNC and Turnmill Centre machinery from DN Solutions Co. Ltd., Korea, and ACE Designers Limited, India. The company invested ₹0.10 crore in equity and ₹9.91 crore in Compulsorily Convertible Preference Shares of Ajna Aerospace & Defence Private Limited on March 5, 2026, as part of its inorganic growth strategy.

The Monitoring Agency noted that unutilized IPO funds have been parked in subsidiary bank accounts, which the offer document does not explicitly specify. The Board of Directors has taken note of this observation. The reports have been made available on the company's website and can be accessed at https://www.aequs.com/investor/ .