Multibagger stock hits 52-week high after announcement of warrants worth ₹185 crore
2 min read . Updated: 14 Oct 2022, 01:53 PM IST
Premium- Multibagger stock has climbed to 52-week high on third day in a row
Stock market today: Apollo Micro Systems shares are one of those multibagger stocks that have given strong upside movement in post-Covid stock market rebound. The small-cap stock has announced issuance of warrants to the tune of ₹185 crore that attracted buying interest in the scrip leading to rise at new 52-week high in early morning deals. Continuing its uptrend on Friday trade session, this bulls' favourite stock surged to its 4-year high today when it hit intraday high of ₹247.80 apiece on NSE. This is third day in a row when the multibagger stock has climbed to 52-week high.
Informing stock market exchanges about development in regard to issuance of warrants, Apollo Micro Systems Ltd said, “This is to inform you that Board of Directors of the company, in their meeting held today i.e., Thursday, 13th October, 2022 have considered and approved to issue up to 1,01,00,070 (One Crore One Lakh and Seventy) warrants each convertible into, or exchangeable for, one equity share within the period of 18 (eighteen months) in accordance with the applicable law (“Warrants") at a price of ₹183.30/- (Indian Rupees One Hundred and Eighty Three and Thirty paise Only) each (including the warrant subscription price and the warrant exercise price) aggregating up to ₹185,13,42,831/- (Indian Rupees One Hundred and Eighty Five Crores Thirteen Lakhs Forty Two Thousand Eight Hundred and Thirty One Only) to Mr. Karunakar Reddy Baddam, Promoter and Managing Director of the Company and to certain other non-promoter group persons."
Apollo Micro Systems went on to add that warrants will be issued by way of preferential issue in accordance with the provisions of Section 42 and Section 62(1)(c) of the Companies Act, 2013, as amended (“Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, as amended (“Rules"), Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, Listing Regulations and such other acts / rules / regulations as maybe applicable and subject to necessary approval of the members of the Company and other regulatory authorities, as maybe applicable (“Warrants Issue").
The board of directors of the company also considered and approved to increase the authorised share capital of the company to ₹36 crore divided into 3.60 crore equity shares of ₹10 each subject to the approval of the shareholders in the forthcoming Extra Ordinary General Meeting of the Company.
As mentioned above, Apollo Micro Systems shares are one of the multibagger stocks of Indian stock market. In last one year, it has almost doubled shareholders' money by delivering more than 98 per cent return. However, the stock gave sharp upside movement in post-Covid stock market rebound. From April 2020 to till date, this small-cap stock has risen from around ₹45 apiece to ₹245 apiece levels, logging near 450 per cent rise in these near two years.
