Multibagger Defence Stock Apollo Micro Systems Approves Conversion of Warrants Into Equities

Apollo Micro Systems has told the stock market that these shares are locked in till 19 December 2025, but these 1.65 crore shares of ₹1 face value have been approved by the National Stock Exchange. On 3 May 2024, Apollo Micro Systems issued these shares to the promoter in exchange for warrant conversion at Rs 18.60 per share. Apollo Micro Systems is a Telangana-based company that works in critical defence and space technology. The company has entered its 40th year of operation this year.

On Wednesday, during the bullish trading session of the stock market, the shares of Apollo Micro Systems, a small-cap company in the defense and aerospace business, witnessed a decline of 4.26 per cent and the shares of the company with a market cap of Rs 2960 crore were trading at a low level of ₹ 99. The 52-week high of the shares of Apollo Micro Systems Limited is Rs 162 while the 52-week low is Rs 34.

In the last 1 year, Apollo Micro Systems' shares have given a return of 186 per cent to the investment from the lowest level of Rs 34.70. Apollo Micro Systems' shares were at the level of Rs 12.29 on 7 June 2019, from where investors have got a bumper return of 706 per cent. Apollo Micro Systems has informed the stock market that the stock exchange has approved the trading of 1.65 crore equity shares issued after conversion of warrants issued on preferential basis.

According to the company's quarterly results, net selling grew 26.76 percent to Rs 135.44 crore in Q4FY24 as compared to Q4FY23. EBITDA grew 25.61 percent to Rs 28.74 crore and profit after tax (PAT) grew 79.23 percent to Rs 12.93 crore, while in its annual results, net selling grew 24.91 percent to Rs 371.63 crore. EBITDA grew 30.85 percent to Rs 83.87 crore and profit after tax (PAT) grew 66.01 percent to Rs 31.11 crore.

Converting several programs into production contracts increased their order book and revenue. They are developing cutting-edge defensive solutions with export potential, as evident from their participation in the Make-II defence project. The ground-breaking ceremony for their Integrated Plant for Ingenious Defense Systems (IPiDS) strengthens their capabilities in defense and space. AMS is ramping up production to meet growing demand and take advantage of opportunities in the defense and electronics sectors.

Earlier, the promoter Apollo Micro Systems Ltd purchased 1,65,060,000 new equity shares of face value of Rs 1 per share by converting 16,506,000 warrants following the stock split of the equity shares. This conversion increased the promoter stake in the company from 53.21 per cent to 55.80 per cent.

Established in 1985, Apollo Micro Systems is at the forefront of creating, constructing, and validating crucial electronics and electro-mechanical solutions for sectors such as aerospace, defence, and space. The company is renowned for its commitment to research and development, resulting in notable projects such as torpedo-homing systems and underwater mines.