Apollo Micro Systems raises funds via equity shares, warrants

Apollo Micro Systems, a prominent player in the aerospace, defence, and homeland security sectors, has successfully completed its preferential allotment of equity shares and convertible warrants. This strategic move has resulted in an initial capital raise of over ₹416 crore. The company announced the issuance of 2,70,42,894 equity shares at ₹114 each, aggregating to ₹308.28 crore, alongside the issuance of 3,80,67,058 convertible equity warrants at the same price, generating an initial sum of ₹108.49 crore. An additional ₹325.50 crore is anticipated within six months as the remaining 75% of the convertible warrants’ proceeds.

The preferential allotment witnessed significant contributions from the promoter group, which subscribed to 1,68,01,200 convertible equity warrants at an issue price of ₹114 each. These were equally distributed between Mr. Baddam Kanishka Reddy and Mr. Baddam Chanakya Reddy, reinforcing the promoter family’s commitment to long-term growth. Additionally, Non-Executive Director Aditya Kumar Halwasiya invested in 15,00,000 equity shares and an equal number of convertible equity warrants, highlighting his strategic involvement. LIC Mutual Fund also participated robustly, acquiring 26,31,578 equity shares, further validating Apollo’s business trajectory.

The capital raised is earmarked for various initiatives, including growth strategies, working capital, and enhancing the company’s capabilities in high-tech and mission-critical solutions. This substantial capital infusion underscores investor confidence in Apollo Micro Systems, as evidenced by the significant participation from key stakeholders like the promoter group, LIC Mutual Fund, and Aditya Kumar Halwasiya. The company anticipates this financial boost to significantly bolster its innovation capabilities in the competitive aerospace and defence markets.