Apollo Micro hits new high on heavy volumes; stock zooms 34% in 5 days

In the past five trading days, the stock soared 34% after the company entered into Term Loan (TL) Agreement with Bajaj Finance to avail credit facilities in the form of TL up to Rs 15 crore

Shares of Apollo Micro Systems (AMS) hit a new high of Rs 91 as they zoomed 19 per cent on the BSE in Tuesday's intraday trade, on the back of heavy volumes, in an otherwise weak market. The stock of the aerospace & defense company has surpassed its previous high of Rs 80 touched on October 20.

A combined 23.83 million equity shares, representing 10.2 per cent of total equity of AMS, have changed hands on the NSE and BSE thus far. In comparison, the S&P BSE Sensex was down 0.17 per cent at 64,005 at 01:33 PM.

In the past five trading days, the stock price of AMS has soared 34 per cent after the company, on October 25, entered into Term Loan Agreement with Bajaj Finance Limited to avail credit facilities in the form of Term Loan (TL) up to Rs 15 crore to incur capex for R&D.

AMS said the facility is to be repaid in 33 monthly installments, commencing after completion of moratorium of 3 months and ending on 36th month from the date of disbursement.

Meanwhile, since May 4, the share price of AMS has skyrocketed 176 per cent after the stock split in to shares of face value of Re 1 from Rs 10.

AMS is a pioneer in design, development, and assembly of Custom Built Electronics and Electro-mechanical solutions. AMS offers solutions based on state-of-the-art technologies for Aerospace, Defense & Space as primary customers, and also caters solutions for Railways, Automotive and Home Land Security markets.

AMS has entered into significant agreements with the Defence Research and Development Organisation (DRDO). Besides, the company is gradually scaling up to be a weapon design, development, and manufacturing company for which the Weapon Integration facilities are being commissioned.

The Government allocated Rs 5.95 trillion for the Ministry of Defence in the Budget 2023-24. The Government has already notified fourth Positive Indigenization List (PIL) for FY24, consisting of 101 items for which there would be an embargo on the imports.

"This represents a great opportunity for the Indian defence industry to manufacture these items using indigenous design and development capabilities to meet the demand of the armed forces. The company is in discussion with various international companies who wish to manufacture their products under Make in India and this facility would be utilised to meet their manufacturing requirement," said Baddam Karunakar Reddy, managing director of the company.