Aequs Limited has informed the Exchange about General Updates
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Aequs Limited has invested INR 9.3 crore (approximately) in its Joint Venture, Aequs Cookware Private Limited (ACPL), through a rights issue. The company acquired 18,16,761 equity shares at INR 51.19 per share. ACPL is in the cookware and kitchenware manufacturing business and was incorporated in June 2024. For FY 2024-25, ACPL reported a turnover of INR 16 crore but incurred a loss of INR 5.57 crore with a networth of INR 4.87 crore. The investment is being funded using proceeds from Aequs Limited's IPO, and the funds will be used by ACPL for its operational requirements and general corporate purposes. Aequs Limited will continue to hold 50% stake in ACPL with no change in shareholding percentage.
This is a strategic expansion into the cookware segment using IPO funds. While ACPL is currently loss-making, the investment could diversify Aequs Limited's revenue streams. The transaction was approved by the Audit Committee and conducted at arm's length, which provides some governance comfort. The limited financial history of ACPL (only one year old) suggests this is an early-stage investment with associated risks.