2,250 Per Cent Multibagger Returns: Defence Company Approves Allotment of 2,70,42,894 Equity Shares & Allotment of 3,80,67,058 Convertible Equity Warrants
The stock gave multibagger returns of 1,450 per cent in just 3 years and a whopping 2,250 per cent in 5 years.
On Tuesday, shares of Apollo Micro Systems Ltd surged 1.93 per cent to Rs 201 per share from its previous closing of Rs 197.20 per share. The stock’s 52-week high is Rs 202 per share and its 52-week low is Rs 88.10 per share.
Apollo Micro Systems Limited has secured in-principle approvals from BSE Limited and National Stock Exchange of India Limited on May 19, 2025, paving the way for a significant preferential allotment of securities. The company's Securities Allotment Committee has approved the issuance of 2,70,42,894 equity shares for Rs 114 each, including a premium of Rs 113 per share. This equity share allotment, aggregating to Rs 308.29 crore, is being made to 53 identified non-promoter persons/entities. Additionally, the committee has sanctioned the allotment of 3,80,67,058 convertible equity warrants on a preferential basis, also at Rs 114 each, totalling Rs 108.49 crore. These warrants have been allotted to 30 investors, including both the promoter group and certain non-promoter individuals/entities.
The terms of the warrant allotment stipulate an initial subscription price of Rs 28.50 per warrant, with the balance of Rs 85.50 per warrant payable at the time of conversion. Each warrant is convertible into one fully paid-up equity share of Re 1 face value, and allottees have a six-month window from the date of allotment to exercise their conversion option. The company has already received the full subscription amount of Rs 308.29 crore for the equity shares and Rs 108.49 crore, representing 25 per cent of the issue price, for the convertible equity warrants. The pricing for both the equity shares and warrants has been determined in compliance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
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About the Company
Established in 1985, Apollo Micro Systems is at the forefront of creating, constructing, and validating crucial electronics and electromechanical 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.
According to Quarterly Results, net sales increased by 9 per cent to Rs 161.77 crore and profit after tax (PAT) decreased by 23 per cent to Rs 13.96 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 51 per cent to Rs 562.07 crore and profit after tax (PAT) increased by 81 per cent to Rs 56.36 crore in FY25 compared to FY24.
Apollo Micro Systems is experiencing strong growth, driven by a robust order book and successful execution of defence programs. This includes their strategic acquisition of IDL Explosives Ltd. to become a fully integrated Tier-1 defence OEM. The company projects a 45-50 per cent revenue CAGR over the next two years and recently secured an export order valued at USD 13,366,500 (approximately Rs 113.81 crore) for an advanced avionic system, reinforcing their commitment to innovation and India's self-reliant defence infrastructure.
The company falls under the BSE Small-Cap Index with a market cap of over Rs 6,000 crore. In March 2025, FIIs bought 6,03,751 shares and increased their stake in AMS to 0.93 per cent from 0.74 per cent in December 2024. The stock gave multibagger returns of 1,450 per cent in just 3 years and a whopping 2,250 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.