Aeroflex Industries has announced a comprehensive expansion strategy that includes significant operational enhancements and capital raising initiatives. The company is undertaking multiple development projects to strengthen its manufacturing capabilities and market position in the industrial solutions sector.

Facility Expansion and Manufacturing Upgrades

The company's expansion plans encompass several key areas of operational enhancement. The following table outlines the major development initiatives:

Capital Raising Initiative

To support its expansion plans, Aeroflex Industries has completed a significant equity fundraising exercise. The company has issued new equity shares to raise capital for its growth initiatives.

Strategic Manufacturing Enhancements

The installation of robotic welding lines and stations represents a significant technological upgrade for the company's manufacturing processes. This automation initiative is expected to enhance precision, efficiency, and production capacity across the company's operations.

The establishment of an annealing plant specifically for stainless steel hoses demonstrates the company's focus on specialized metallurgical processing. This facility will enable enhanced treatment of stainless steel components, potentially improving product quality and expanding manufacturing capabilities.

Liquid Cooling Solutions Expansion

The planned major facility expansion for liquid cooling skids indicates the company's strategic focus on advanced thermal management solutions. This expansion aligns with growing industrial demand for efficient cooling systems across various applications and sectors.

Aeroflex Industries Limited's board of directors has approved a comprehensive expansion plan worth ₹97.56 crores during their meeting held on December 18, 2025. The board also approved a preferential issue of equity shares to fund the expansion initiatives, marking a significant step in the company's growth strategy.

Board Meeting Outcomes

The board meeting, which commenced at 5:00 PM and concluded at 5:55 PM, approved several key strategic initiatives under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

Capacity Enhancement Details

The expansion plan includes significant capacity additions across key product lines. For liquid cooling skids, the company will add 13,000 pieces per year to the existing capacity of 2,000 pieces per year, with completion targeted by June 2026. The existing capacity is currently under trial production.

The robotic welding lines and automatic welding stations, along with the annealing plant, are supportive machinery that will automate processes related to stainless steel hose assemblies without increasing capacity but enhancing operational efficiency. These installations are scheduled for completion by December 2026.

Preferential Issue Approval

The board approved the issuance of 30,10,398 equity shares with a face value of ₹2.00 each at an issue price of ₹182.70 per share, including premium. The preferential issue will be made to non-promoters and is subject to necessary regulatory and statutory approvals.

Key Investors and Shareholding

The preferential issue will be subscribed by six investors, with detailed shareholding changes outlined in the regulatory filing:

Extraordinary General Meeting

To consider the preferential issue of equity shares, an Extraordinary General Meeting (EGM) of the company's members is scheduled for Thursday, January 15, 2026. The meeting will seek shareholders' approval for the proposed fund raising initiative.

The company cited meeting future demands and adding value-added products to the portfolio as the rationale behind these expansion initiatives, positioning itself to capitalize on growing opportunities in data center cooling solutions and specialized industrial applications.