Aequs Limited has made a significant investment of ₹2,307.12 crore in its wholly owned subsidiary AeroStructures Manufacturing India Private Limited (ASMPL) through a rights issue offering. The aerospace manufacturing company announced this development in a regulatory filing dated February 17, 2026, under Regulation 30 of the SEBI Listing Regulations.

Investment Details

The investment involved the subscription of 7,989,750 equity shares at a price of ₹288.76 per share, totaling ₹2,307,120,210. Despite this substantial investment, there will be no change in the percentage of shareholding, with ASMPL continuing to remain a wholly owned subsidiary of Aequs Limited.

Purpose and Utilization

This investment represents part of the utilization of IPO proceeds as outlined in Aequs Limited's prospectus dated December 5, 2025. The funds will be strategically deployed for two primary purposes: repaying existing bank loans and meeting capital expenditure requirements. The transaction falls under the company's planned allocation of IPO proceeds for strengthening its subsidiary operations.

About AeroStructures Manufacturing India

ASMPL, incorporated on February 7, 2013, specializes in manufacturing aerostructure parts and has demonstrated consistent growth over recent years. The subsidiary operates exclusively in India and has established itself as a significant contributor to Aequs Limited's aerospace manufacturing capabilities.

Historical Performance

ASMPL has shown steady revenue growth over the past three years, reflecting the robust demand in the aerospace sector and the company's operational efficiency.

Regulatory Compliance

The transaction, being between a holding company and its wholly owned subsidiary, does not fall within the ambit of related party transactions as per Regulation 23(5) of the SEBI Listing Regulations. No governmental or regulatory approvals were required for this investment, and the promoter/promoter group/group companies have no additional interest in ASMPL beyond the existing shareholding structure.

Aequs Limited has signed a non-binding Memorandum of Understanding with the Government of Tamil Nadu on February 16, 2026, marking a significant step in the company's expansion plans. The agreement involves Guidance, the nodal agency of the Government of Tamil Nadu, and focuses on establishing a new manufacturing facility in the state.

Investment and Manufacturing Scope

The MoU outlines an ambitious investment plan for aerospace component manufacturing in Tamil Nadu. Key details of the proposed investment include:

Government Support and Incentives

The Government of Tamil Nadu has committed to providing comprehensive support for the manufacturing unit establishment. The state government will offer:

• Infrastructure Support: Necessary infrastructural facilities and regulatory facilitation subject to applicable laws
• Power Supply: Uninterrupted power supply on best-effort basis
• Policy Incentives: Standard incentives as per existing Tamil Nadu Government policies
• Facilitation Services: Administrative and regulatory support through the Guidance agency

Strategic Significance

This domestic agreement represents Aequs Limited's strategic expansion into Tamil Nadu's manufacturing ecosystem. The company specializes in aerospace components, and this MoU will enable manufacturing of critical aircraft components including engines, landing gear, and various aircraft systems within the state.

The agreement is structured as a non-binding MoU, providing flexibility for both parties while establishing the framework for future collaboration. The ten-year investment timeline demonstrates the company's long-term commitment to developing manufacturing capabilities in Tamil Nadu.

Regulatory Compliance

Aequs Limited has disclosed this development in compliance with Regulation 30 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015. The company confirmed that this arrangement does not constitute a related party transaction, ensuring transparency in corporate governance practices.