Apollo Micro surges 10%; boards okays warrants issue up to Rs 185 crore

Shares of Apollo Micro Systems soared 10 per cent to Rs 237.75 on the BSE in Friday’s intra-day trade after the company’s board approved issue of warrants to promoters and non-promoter group person on preferential basis.

The stock of defence company is trading higher for the third straight day and rallied 34 per cent during the period. It was quoting at its highest level since April 2018.

Apollo Micro Systems on Thursday after market hours announced that its board approved to issue up to 10.10 million warrants each convertible into, or exchangeable for, one equity share within the period of 18 months. The company will issue warrants at a price of Rs 183.30 each aggregating up to Rs 185.13 crore, the company said in an exchange filing.

Upon issue of warrants, an amount equivalent to 25 per cent of the total issue size shall be called upfront from the proposed allottees. The company will allot 4.62 million warrants to Mr Karunakar Reddy Baddam, Promoter and Managing Director of Apollo Micro Systems. The company said it will issue 1.9 million warrants to Nexpact Limited, Mauritius and 1.2 million warrants to Maybank Securities Pte. Ltd.

In the past one month, the stock has outperformed market as shares surged 49 per cent, as against 3.5 per cent decline in the S&P BSE Sensex. Moreover, in the past three months, the stock soared 80 per cent, as compared to 9 per cent rise in the benchmark index.

Apollo Microsystems is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company. It is involved in design, development and sale of high-performance, mission and time critical solutions to defence, space and home land security of the defence ministry, government controlled public sector undertakings, and private sectors.

That apart, the company has also participated in several indigenous missile programmes, underwater electronic warfare, underwater missiles, surface to air missiles, nuclear missile programmes, surface to surface missile programmes, indigenous submarine programmes, UAV’s long and short endurance, ships, and space programmes.