Apollo Micro Systems To Raise Capital By Issuing Equity Shares And Warrants Worth Rs 816.07 Cr

On Tuesday, shares of defence company Apollo Micro Systems Ltd. surged around 7.5 per cent to an intraday high of Rs 131.90 per share from its previous closing of Rs 122.33 per share. The stock's 52-week high is Rs 157 and its 52-week low is Rs 87.99. The company has a market cap of over Rs 3,990 crores with multibagger returns of 1,485 per cent in 5 years.

Apollo Micro Systems Ltd (AMS) has gotten its hands on an investment worth Rs 816.07 crore via selling equity shares disproportionate to existing shareholders. AMS said it was working toward issuing shares and equity warrants, meaning its shareholders would lose equity dilution. This will help AMS to push through its growth phases more smoothly.

The securities will be sold to investors at a face value of Rs 1 which is expected to raise about Rs 3.81 billion and the total equity shares will equal around Rs 3.19 billion. The company hopes that the total will equal around Rs 435.10 crores.

Along with the Indian navy orders AMS also received contracts of Rs 6.13 crores from the DRDO and in addition to that AMS has also partnered up with ARDE-DRDO which allows AMS to further push the boundaries with the PRACHAND Munition Hardware technology.

Other contracts include the agreements with Reliable Techno Systems India Pvt Ltd, Economic Explosives Ltd, Munitions India Ltd, Bharat Dynamics Limited and a specific project on Rocket Guided Bombs for Anti Submarine Warfare. AMS has also recently been awarded the lowest bidder for the DRDO, PSUs, and armed forces orders of Rs 16.96 crore. BEL together with a private company also tendered offerings of 21.42 crores AMS.

The ability of AMS to deepen bases in profit is remarkable. AMS's total income surged by 85 percent in Q2 FY25, climbing to Rs 161.30 crore as profit after tax (PAT) surged by 140 percent to Rs 15.73 crore relative to Q2 FY24. Half-yearly results were also able to demonstrate appropriate revenue generation with net sales reaching Rs 253.09 crores with a 74 percent increase and a PAT of Rs 2416 crores with an astounding increase of 194 percent for H1 FY25. For FY 24, net sales grew by 24.91 percent to Rs 371.63 crore and PAT increased by 66 percent to Rs 31.11 crore.

AMS is part of the BSE Small-Cap index with a market cap of over Rs 3,000 crore. In September 2024, domestic institutional investors (DIIs) bought a 0.87% share of the company which is a good indication of its possible future development. Over five years, AMS has gained 1250% multibagger making its good name as a growth company.

Founded way back in 1985, Apollo Micro Systems specializes in state-of-the-art Electronic and Electro Mechanical Systems for Aerospace, Defence and Space applications. Its dedication to research and development has given rise to systems like torpedo-guiding systems and underwater mine systems proving once again AMS's standing as a partner of faith in the defense systems of the country.

This strategic equity infusion prepares AMS for rapid growth to further bolster the critical defense and aerospace capabilities of India.