Apollo Micro Systems Expands Equity Base; What This Means For Shareholders of This Defence Stock?

Apollo Micro Systems Limited has notified the stock exchanges of the issuance of equity shares in accordance with the exercise of warrants issued on a preferential basis. The company claimed in a regulatory filing dated December 22, 2025, that after an equal number of warrants were converted, its Securities Allotment Committee authorized the allotment of 11,696 equity shares with a face value Re. 1 each.

One of the warrant holders, Mr. Piyush Bhupendra Gala, received the allotment when the remaining warrant exercise fee totalling Rs 10,00,008 was received. The warrants were first distributed to 30 allottees on June 2, 2025, as part of a wider preferential issue of 3,80,67,058 warrants, each of which can be converted into one equity share.

According to the conditions of issue, each warrant had a total issue price of Rs 114, of which 75% (Rs 85.50) was due at the time of conversion. Out of the 23,977 warrants possessed, Mr. Gala exercised 11,696 of them upon conversion, which led to the allocation of an equivalent number of equity shares. Apollo Micro Systems' issued, subscribed, and paid-up share capital grew from Rs 35,72,80,744 to Rs 35,72,92,440 as a result of this allotment, and it currently consists of 35,72,92,440 equity shares of Re. 1 each.

The newly allocated shares will be ranked on par with the company's current equity shares.

The company also disclosed that, out of the total 3,80,67,058 warrants issued under the preferential allotment, 2,37,59,986 warrants have already been converted into equity shares. Any warrants not exercised within 13 months from the date of allotment will lapse, and the amount already paid on such unexercised warrants will stand forfeited, as per a regulatory filing.

Meanwhile, Apollo Micro Systems Limited (AMS) has achieved a significant milestone in India's defence manufacturing ecosystem after receiving approvals from the Defence Research & Development Organisation (DRDO) for two critical Transfers of Technology (ToT) related to Directed Energy Weapon (DEW) systems. The approvals were disclosed by the company on December 22, 2025.

Subject to the execution of the licensed agreements and the satisfaction of regulatory requirements, the approvals include the transfer of Electro-Optical (EO) Tracking System technology with EO sensors for DEW from DRDO's Instruments Research & Development Establishment (IRDE), Dehradun, and Multi-Channel 10 kW Laser Directed Energy Weapon System technology from DRDO's Centre for High Energy Systems & Sciences (CHESS), Hyderabad.

Apollo Micro Systems' position in cutting-edge defense electronics is strengthened by these technologies, which also closely align with India's defense indigenisation and Atmanirbhar Bharat initiatives. These technologies significantly enhance Apollo Micro Systems' capabilities in laser-based engagement systems and precision electro-optical tracking solutions.

The management emphasized that these ToTs will strengthen domestic capabilities in the face of the fast changing aerial threat scenario and support AMS's continuing development of anti-drone systems under the "Make" category for the Indian Armed Forces, including both soft-kill and hard-kill solutions.

On Tuesday, 23rd December, the shares of Apollo Micro Systems were locked in an upper circuit limit at Rs 262.15 apiece with an upside gap of 5% from the previous close. The market cap of the company was Rs 8,798.79 Cr.