Aeroflex Industries Limited approved a capital expenditure programme to expand manufacturing capacity and approved a preferential equity issue at a board meeting held on 18 December 2025. The decisions cover capacity addition for liquid cooling skids used in data centres, process automation through new welding infrastructure, and the raising of equity capital to partly fund the investment.
According to the company’s filing with the stock exchanges, the board approved the expansion of facilities for manufacturing liquid cooling skids, with existing capacity at 2,000 pieces per year currently under trial production. The company plans to add 13,000 pieces per year of capacity, with the additional capacity scheduled to be operational by June 2026. The expansion is intended to support future demand and expand the company’s portfolio of value-added products.
The board also approved the installation of robotic welding lines, automatic welding stations, and a dedicated annealing plant for stainless-steel braided hoses and assemblies used in mission-critical applications. The company stated that these investments are supportive in nature and will automate manufacturing processes rather than directly increase production capacity. The automation and annealing facilities are expected to be added by December 2026.
The total investment for the approved projects is estimated at INR 975.6 million. The company plans to finance the investment through a combination of internal accruals amounting to INR 425.6 million and proceeds from a preferential equity issue of INR 550.0 million.
As part of the funding plan, the board approved the issuance of 3,010,398 equity shares with a face value of INR 2 each at an issue price of INR 182.70 per share, including premium, on a preferential basis to non-promoter investors. The proposed allotment is subject to shareholder approval and regulatory clearances. An extraordinary general meeting of shareholders has been scheduled for 15 January 2026 to seek approval for the issuance.
The proposed preferential allotment involves six investors, including Ashish Rameshchandra Kacholia, Bengal Finance and Investment Private Limited, Sanjay Babulal Surana, Vaibhav Jayantilal Shah acting on behalf of R K Investments, Madhu Silica Private Limited, and Nareshkumar Mahasukhlal Mehta. The company disclosed the pre-issue and post-issue shareholding details for each investor as part of its regulatory filing.
Aeroflex Industries Limited is engaged in the manufacture of flexible stainless-steel hoses, assemblies, and related engineered products, serving industrial and specialised application segments.