Apollo Micro Systems shares hovers near 5% upper circuit; here's why

The buying on the counter came after its subsidiary IDL Explosives was granted a running contract (RC) to supply of bulk explosives to the subsidiaries of Coal India

Apollo Micro Systems shares hovered near their 5 per cent upper circuit on BSE, registering an intra-day high at ₹272.5 per share. At 12:01 PM, Apollo Micro Systems' share price was trading 4.47 per cent higher at ₹271.35 per share on BSE. In comparison, the BSE Sensex was up 0.43 per cent at 85,036.04.

 

The company has a total market capitalisation of ₹9,108.53 crore. Its 52-week high was at ₹354.65, and its 52-week low was at ₹101.05.  

The buying on the counter came after its subsidiary IDL Explosives was granted a running contract (RC) to supply bulk explosives to the subsidiaries of Coal India. The order is valued at ₹419.3 crore and an export order value of ₹1.5 crore for the supply of cartridge explosives. The cumulative value of orders received amounts to ₹420.89 crore.  READ STOCK MARKET UPDATES TODAY LIVE  

 

"This is to inform you that M/s. IDL Explosives Limited, a step-down subsidiary of the Company in the ordinary course of its business, has been granted a Running Contract (RC) for the supply of bulk explosives to Subsidiaries of Coal India Limited, amounting to ₹419.396 crore and an export order value of ₹1.5 crore for supply of cartridge explosives,” the filing read. 

 

That apart, recently, Apollo Micro Systems received orders worth ₹100.24 crore from a private company for the supply of Unmanned Aerial Systems, with deliveries earmarked for the Ministry of Defence. The orders, received in the ordinary course of business, are scheduled to be executed within a period of four months, the company said in the statement.

 

The company has also received approvals from the Defence Research & Development Organisation (DRDO) for two distinct Transfers of Technology (ToT). These systems use high-powered lasers to inflict damage on targets. Compared to traditional weapons, which mainly rely on physical impact and kinetic energy, DEWs use directed energy to heat and destroy or damage the target.   ALSO READ | Motilal Oswal sees KFin Tech as dominant, cash-generative; check outlook 

Prior to that, Apollo Micro received a license for the manufacturing of equipment under the categories of defence aircraft for unmanned helicopter activity, which includes unmanned aerial systems. The license is also granted under the category of allied defence equipment for inertial navigation systems and radar equipment.