Multibagger defence stock Apollo Micro Systems declares ₹951 crore fund raise via preferential shares

Multibagger defence stock Apollo Micro Systems has approved a sweeping capital-raising plan worth more than ₹3,322 crore, comprising a preferential issue of equity shares and convertible warrants, while also clearing an increase in its authorised share capital and convening an Extraordinary General Meeting (EGM) to seek shareholders' approval.

The company's board, at its meeting held on July 6, approved increasing the authorised share capital from the existing ₹45 crore, divided into 45 crore equity shares of Re 1 each, to ₹63 crore, divided into 63 crore equity shares of Re 1 each, through the addition of 18 crore equity shares ranking pari passu with the existing shares.

The board also approved issuing up to 2,28,30,902 equity shares on a preferential basis to select non-promoter investors at ₹416.60 per share, including a premium of ₹415.60 per share, aggregating to ₹951.13 crore.

In addition, the board also announced the issuance of up to 5,69,15,380 convertible equity warrants at ₹416.60 each, aggregating up to ₹2,371.09 crore, to promoter group entities and certain identified non-promoter investors. The warrants will be issued on a preferential basis through private placement, subject to statutory, regulatory and shareholder approvals.

The company said, "Upon issue of Warrants in accordance herewith, an amount equivalent to 25% (Twenty-Five per cent) of the total issue size shall be called upfront from the Proposed Warrant Allottees."

The company will hold its EGM through video conferencing on August 4, while July 28 has been fixed as the cut-off date for determining shareholders eligible to vote electronically.

Equity issue, warrants and shareholder approvals

According to the defence company, the entire preferential equity issue consideration will be payable at the time of application. 100% of the Preferential Allotment Price shall be payable at the time of application to the Equity Shares, it informed.

The preferential equity issue involves 55 investors, while the warrant issue has been proposed for 93 investors. Each warrant will be convertible into one fully paid-up equity share of face value Re 1 and may be exercised in one or more tranches within 12 months from the date of allotment.

Among the major proposed allottees in the equity issue are Saint Capital Fund with 50 lakh shares, Nautilus Private Capital Ltd, Maestro Emerging Fund PCC-Value Investing, Robust Knights Fund PCC-Cell 1, M7 Global Fund PCC Cell Dewcap Fund and Cullinan Opportunities Incorporated VCC Sub Fund 1 with 25 lakh shares each, and Tata Mutual Fund with 12 lakh shares.

For the warrant issue, the largest proposed allottee is Opal Global Diversified Fund Limited with 1.20 crore warrants, followed by Cullinan Opportunities Incorporated VCC Sub Fund 1 with 45 lakh warrants. Promoters Chanakya Reddy Baddam and Kanishka Reddy Baddam are proposed to receive 1,30,50,000 warrants each.

The board also approved the appointment of Acuité Ratings & Research Limited as the monitoring agency for the preferential issue proceeds, authorised borrowing beyond the company's paid-up share capital and free reserves, approved the creation of security, and cleared proposals relating to loans, guarantees and investments under the Companies Act, subject to shareholder approval.

Apollo Micro Systems share price

The defence stock has given multibagger returns in 3 months, soaring 115%. Meanwhile, it has been flat, up just 1% in the last 3 months. In the past 6 months, it has added 6%; however, in 1 year, it has rallied 130%.

It has hit its 2-week high of ₹466.70 earlier this month, while it touched its 52-week low of ₹162.25 in July 2025.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.