Apollo Micro IPO to open on 10 January, price band set at Rs270-275 per share
Mumbai: Apollo Micro Systems Ltd, a Hyderabad-based company catering to the defence sector, on Thursday said it will launch its Rs156 core initial public offering (IPO) on 10 January.
This will be the first IPO to be launched in 2018. The firm has set a price band of Rs270-275 per share for the IPO. The offer will close on 12 January.
The share sale is a pure primary offering. The company intends to utilize the proceeds from the offering to meet working capital requirements.
Established in 1997 by Baddam Karunakar Reddy, Apollo Micro Systems offers integrated solutions to the aerospace, defence, space, homeland security and transportation sectors. It has participated in several indigenous missile, underwater electronic warfare, and unmanned-aerial vehicles programmes, among others.
In fiscal 2017, the company reported a revenue of Rs211.8 crore, up 33% from the previous fiscal. It reported a profit of Rs18.57 crore in 2016-17, up 86% from a year earlier.
According to Addepalli Krishna Sai Kumar, whole-time director (operations) at Apollo Micro Systems, the company is developing several indigenous defence solutions.
“As a party to the government’s Make in India drive, our company will be a huge beneficiary along with companies like Bharat Electronics Ltd, Astra Microwave Products Ltd and Centum Electronics Ltd. Under Make in India initiative, the government intends to export defence equipment and solutions to the neighbouring countries,” Kumar said.
According to IRR Advisory, a subsidiary of Fitch Solutions, India has one of the fastest-growing global defence markets and spends $40 billion (1.62% of gross domestic product in fiscal 2017) on the sector every year.
India is also one of the largest importers of conventional defence equipment and spends about 31.5% of its total defence budget on capital acquisitions. However, about 60% of India’s defence requirements is met through imports.
In 2017, the Indian primary market witnessed 36 IPOs with companies raising a record Rs67,147 crore, according to data from primary market tracker Prime Database.
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