Apollo Micro locked 5% lower circuit after strong debut

The stock listed at Rs 478, a 74% premium against its issue price of Rs 275 per share on BSE

Apollo Micro Systems locked in lower circuit of 5% at Rs 454 on BSE with no buyers were seen on the counter, after making a strong debut. On the National Stock Exchange (NSE), the stock locked in lower circuit of Rs 442, down 5%.

Till 02:25 PM; a combined 1.2 million shares changed hands on BSE and NSE. There were pending sell orders for 511,212 shares on both the exchanges.

The stock made a stellar debut by listing at Rs 478, a 74% premium against its issue price of Rs 275 per share on BSE. It touched high of Rs 480 and low of Rs 454 on BSE in intra-day trade.

Apollo Micro Systems' Rs 156-crore initial public offer (IPO) saw huge oversubscription of 248 times between January 10 and January 12. The portion reserved for non-retail individual investors subscribed by 958 times, while qualified institutional buyers (QIB) portion was subscribed by 102 times and of retail individual investors by 16 times.

The company will use the proceeds of the issue to meet any additional working capital requirements and for general corporate purposes.

Apollo Micro Systems is a Hyderabad based company engaged in the business of electronic, electro-mechanical, engineering designs, manufacturing and supply.  The Company designs, develops and sell high performance, mission and time critical solutions to Defense, Space and Home Land Security for Ministry of Defense, government controlled public sector undertakings and private sectors.

“Apollo Micro Systems has delivered strong financial performance over FY2014-17. The company has registered strong numbers both on the top-line and bottom-line fronts CAGR of around 43% and around 52% respectively over FY2014-17, backed by healthy growth in order book and improvement in margin. The company witnessed improvement in return ratios from around 19% to 29% over the same period,” Angel Broking said in an IPO note.