Defence company raised Rs 416.77 crore via preferential shares and warrants at Rs 114 each, Boosting defence sector growth!

The stock gave multibagger returns of 1,500 per cent in just 3 years and a whopping 2,130 per cent in 5 years.

Apollo Micro Systems Limited recently concluded a significant preferential allotment of equity shares and convertible warrants, a move met with strong shareholder confidence. The company extended its sincere gratitude to all participants, emphasising that their trust and belief in Apollo's vision are powerful motivators. The allotment saw 2,70,42,894 equity shares subscribed, representing an impressive 86.94 per cent of the 3,11,05,210 shares offered. These were issued at Rs 114 per share, raising a substantial Rs 308.28 crore. The convertible warrants offering was even more successful, with all 3,80,67,059 warrants subscribed at Rs 114/- per warrant, contributing Rs 108.49 crore (25 per cent of the total warrant value) to the company's resources.

This successful offering marks a pivotal moment for Apollo Microsystems, reinforcing its growth trajectory. Notably, key personnel, including Addepalli Krishna Sai Kumar (Whole Time Director - Operations), Aditya Kumar Halwasiya (Non-Executive Non-Independent Director), and Sudarshan Chiluver (Chief Financial Officer), along with members of the Promoter Group, participated in the offering. This broad participation underscores the strong confidence of the Board and key managerial personnel in Apollo's long-term strategic vision, highlighting the unity and resilience of the leadership team.

With this robust support, Apollo Microsystems is now poised to accelerate its operations to achieve its vision. The company is intensifying its efforts in R&D, production, and delivery, with each department focused on providing cutting-edge indigenous solutions for India's defence and aerospace sectors. Apollo is strategically positioning itself to lead in specialised areas such as ruggedised electronics, homing systems, and mission-critical subsystems. Managing Director Karunakar Reddy Baddam reiterated the company's unwavering commitment to honouring shareholder trust, viewing their investment as a long-term partnership dedicated to sustained operational performance and long-term value creation, echoing the company's slogan, "We Commit, We Deliver."

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 1,500 per cent in just 3 years and a whopping 2,130 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.