New Delhi [India], July 13: Apollo Micro Systems Ltd is likely to remain on investors’ radar after the defence electronics company announced plans to raise ₹3,322 crore through a preferential issue of equity shares and convertible warrants, marking one of its largest capital-raising exercises to date.
The company’s board has approved the issuance of 2,28,30,902 equity shares worth ₹951.13 crore and 5,69,15,380 convertible equity warrants aggregating ₹2,371.09 crore, taking the total proposed fundraise to ₹3,322.22 crore. The fundraising proposal is subject to shareholder and regulatory approvals.
The equity shares will be allotted to 55 investors at an issue price of ₹416.60 per share. The company will also issue warrants to 93 investors at the same price of ₹416.60 per warrant. Each warrant will be convertible into one fully paid-up equity share of face value ₹1 and can be exercised in one or more tranches within 12 months from the date of allotment. Investors subscribing to the warrants will be required to pay 25% of the issue price upfront, with the balance payable at the time of conversion.
To facilitate the proposed allotments, Apollo Micro Systems has also approved increasing its authorised share capital from ₹45 crore to ₹63 crore by creating an additional 18 crore equity shares of face value ₹1 each. The new shares will rank pari passu with the existing equity shares.
The company has convened an Extraordinary General Meeting (EGM) on August 4, 2026, through video conferencing to seek shareholders’ approval for the preferential issue and related proposals. The record date for determining shareholders eligible to vote has been fixed as July 28, 2026.
The fundraising announcement comes shortly after Apollo Micro Systems signed a definitive agreement to acquire the promoters’ 41.33% stake in Premier Explosives in an all-cash transaction valued at nearly ₹1,550 crore. The acquisition is expected to strengthen the company’s presence in the defence and aerospace sector by combining Apollo Micro Systems’ defence electronics capabilities with Premier Explosives’ expertise in high-energy materials, rocket motors, munitions and countermeasure systems.
The stock has delivered multibagger returns over the past year and is expected to remain in focus as investors assess the impact of the sizeable capital infusion, the resulting equity dilution, and the company’s long-term expansion strategy in India’s rapidly growing defence manufacturing ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.