Apollo Micro Systems, a prominent defence technology company, has announced its intention to raise a substantial ₹3,322 crore through a combination of preferential equity share allotments and convertible equity warrants. The company's board has given its approval for this significant capital infusion.
Details of the Preferential Issue
The fund-raising initiative is structured in two main components. Firstly, Apollo Micro Systems plans to issue up to 2.28 crore equity shares on a preferential basis. These shares will be priced at ₹416.60 each, aiming to generate approximately ₹951 crore for the company.
Secondly, the defence firm will issue up to 5.69 crore convertible equity warrants, also at a price of ₹416.60 per warrant. This warrant issuance is projected to raise around ₹2,371 crore. Each warrant will be convertible into one equity share within a 12-month period from the date of allotment.
Strategic Importance for the Defence Sector
Apollo Micro Systems specializes in designing, developing, and manufacturing high-performance, mission-critical solutions for the defence, space, and homeland security sectors. Its client base includes the Ministry of Defence, government-controlled public sector undertakings, and private defence contractors.
The substantial capital raise is expected to bolster the company's financial position, potentially enabling further investments in research and development, expansion of manufacturing capabilities, or strategic acquisitions, thereby strengthening its presence in the growing Indian defence ecosystem.
Recent Stock Performance
Shares of Apollo Micro Systems have demonstrated significant growth in recent years, reflecting investor confidence in the defence technology sector. The stock has delivered multibagger returns, climbing 785% over the past three years and zooming 3632% over five years. On Monday, the shares closed 5.75% lower at ₹424.05, with a market capitalization of ₹15,151 crore.