Defence Stock Surges Over 7% On Updating Shareholders On This Proposed Fundraising Deal

The shares of Apollo Micro Systems Ltd. (AMS) saw a 7.63% boost on Thursday after opening at Rs 131.69 on the NSE and rising to an intraday high of Rs 141. At 12:28 p.m IST, the stock was up 6.43% at Rs 139.43 from the previous closing of Rs 131.01. Following Apollo Micro Systems Limited's significant update on its Extraordinary General Meeting (EGM) notice dated January 9, 2025, and a corrigendum filed on January 28, 2025, the defence stock saw a surge. The company's stock is still within reach of the 52-week high of Rs 157 and has Rs 88.10 as the 52-week low. Even while the stock price has temporarily dipped, the company continues to report robust financial results, complemented by a recent strategic acquisition in the defence sector.

In the third quarter of FY25, Apollo Micro Systems reported exemplary growth by achieving net sales of Rs 148.39 crore, an increase of 62.5 per cent year-on-year. The company also reported an increase of 83.1% in profit after tax, which now stands at Rs 18.24 crore for the same quarter. For the nine-month period ending in FY25, net sales stood at Rs 400.30 crore, witnessing a growth of 69.5 per cent compared to the last year. Profit after tax in this period has increased to Rs 42.40 crore with a growth of 133.2 per cent. Apollo Micro Systems reported net sales of Rs 371.63 crore for the full financial year FY24, which indicates a growth of 24.91% over FY23. Profit after tax has increased by 66.01%, reaching Rs 31.11 crore.

Apollo Micro Systems (AMS) strengthens its position in the defence sector by acquiring IDL Explosives Ltd from the Hinduja Group for Rs 107 crore, cash. ADIPL, AMS's wholly-owned subsidiary, now claims 100 per cent equity in the company. IDL Explosives, established in 1961 and now part of GOCL Corporation Limited, became India's first domestically owned explosives manufacturer and has over six decades of experience in mining and infrastructure.

The firm has now also disclosed the new updates regarding compliance for its Extraordinary General Meeting (EGM) and other meetings. AMS states that it has issued additional clarifications pertaining to the EGM notice posted on 9 January 2025, and the subsequent corrigendum issued on 28 January 2025. It was clarified that with regard to Convertible Equity Warrants, 25% of the proceeds will be received at the time of allotment, while the remaining 75% will be collected within a six month period. The total collected amount will be fully exhausted within the stipulated nine months as per Chapter V of the SEBI ICDR regulations. Furthermore, in point (2) on page 3 of the corrigendum, the words "and Private Sector" are hereby struck out. The shareholding changes also indicate that Anshu Bhargava will increase his holding from 1,05,000 shares (0.034%) to 6,30,000 shares (0.168%) post-allotment, and Vasudeva Rao Dhanekula will increase his holding from 25,000 shares (0.008%) to 1,25,000 shares (0.033%). These responses were in relation to clarification comments published by the National Stock Exchange of India, NSE, on 13 May 2025.

Apollo Micro Systems has continued garnering the attention of investors. The company is listed on the BSE Small-Cap Index and holds a market capitalisation of over Rs 4000 crores. Foreign Institutional Investors have shown growing interest as well, purchasing 603,751 shares during March 2025, thereby increasing their stake to 0.93% from 0.74% in December 2024.

Incorporated in 1985, Apollo Micro Systems Ltd has maintained dominance in designing, developing, and testing mission-critical electronics and electromechanical systems for the aerospace, defence, and space industries. In line with and fueled by the company's extensive innovation and research initiatives, some of India's leading defence solutions, such as torpedo-homing systems and underwater mines, have been developed, augmenting the country's defence capabilities.