Synopsis:Apollo Micro Systems Limited has approved a fund raise of approximately Rs. 3,322 crore through a preferential issue of equity shares and convertible warrants. The proceeds are expected to strengthen the company’s capital base and support future expansion, while the issue has attracted participation from several institutional investors.
Shares of Apollo Micro Systems Limited are likely to remain in focus after the company’s board approved raising approximately Rs. 3,322 crore through a combination of preferential allotment of equity shares and convertible warrants, subject to shareholder and regulatory approvals.
Apollo Micro Systems Limited has a total market capitalization of approximately Rs. 14,254.70 crore. The company’s shares were trading at Rs. 398.80 apiece on the stock exchange, down by 5.91 percent. The stock has [Insert 5-day performance] over the last five trading sessions, while it has declined 5.09 percent over the last month. The stock touched a 52-week high of Rs. 466.50 and a 52-week low of Rs. 162.34.
According to the company’s regulatory filing, the board approved a preferential allotment of up to 2.28 crore equity shares at an issue price of Rs. 416.60 per share, aggregating to approximately Rs. 951.14 crore. The equity shares will be allotted to 55 non-promoter investors, with the entire issue price payable upfront at the time of application.
In addition, the board approved the issuance of up to 5.69 crore convertible warrants at Rs. 416.60 per warrant, aggregating to approximately Rs. 2,371.09 crore. The warrants will be allotted to promoter group entities and selected non-promoter investors, with 25 percent of the issue price payable upfront, while each warrant will be convertible into one equity share within 12 months from the date of allotment.
As part of the fundraising exercise, the company also approved increasing its authorised share capital from Rs. 45 crore to Rs. 63 crore. The board further approved the appointment of Acuité Ratings & Research Limited as the monitoring agency for the preferential issue and sought shareholder approval for enhanced borrowing powers, creation of security, and granting of loans, guarantees, and investments under the Companies Act, 2013. An Extraordinary General Meeting (EGM) has been scheduled for August 4, 2026, to seek the necessary approvals.
The proposed capital raise is expected to significantly strengthen Apollo Micro Systems’ financial position and provide flexibility to pursue expansion opportunities. The participation of institutional investors, including Tata Mutual Fund and several domestic and international investment funds, reflects continued investor interest in the company’s long-term growth prospects.
India’s defence and aerospace electronics sector continues to benefit from higher government capital expenditure, increased defence indigenisation, and the Make in India initiative. Rising investments in electronic warfare systems, avionics, missile systems, surveillance technologies, and defence electronics are creating long-term growth opportunities for companies engaged in indigenous design and manufacturing of advanced electronic systems.
For investors, the Rs. 3,322 crore fundraising marks one of the largest capital-raising exercises undertaken by Apollo Micro Systems. While the preferential issue and warrants will result in equity dilution upon conversion, the additional capital is expected to strengthen the balance sheet, support future growth initiatives, and enhance the company’s ability to execute large-scale defence and aerospace projects.
Incorporated in 1997, Apollo Micro Systems Limited is a pioneer in the design, development, assembly, and testing of electronic and electromechanical solutions. The company caters primarily to the defence, aerospace, homeland security, transportation, and space sectors, offering mission-critical systems, embedded electronics, and specialised engineering solutions.
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