Apollo Micro Systems shares decline nearly 5% as board approves ₹3,322 crore fund raise

Shares of Apollo Micro Systems Ltd. declined nearly 5% on Tuesday, July 7, as its board approved the fund raise of up to ₹3,322 crore via preferential shares and convertible warrants.

The company's board has also approved raising its authorised share capital from ₹45 crore to ₹63 crore, adding room for 18 crore new ₹1 shares.

In its exchange filing, Apollo Micro said that it will issue up to 2.28 crore new equity shares each to 55 investors for raising around ₹951 crore. Shares will be issued at a price of ₹416.6 each. These include allotees such as Saint Capital Fund (50 lakh shares), Tata Mutual Fund (12 lakh shares), among others.

The company will also issue up to 5.69 crore convertible warrants to 93 investors at ₹416 apiece to raise up to ₹2,371 crore. The investors include two members of the promoter family, Chanakya Reddy Baddam and Kanishka Reddy Baddam, who together get 2.61 crore warrants.

The company said an extraordinary general meeting (EGM) will be held on August 4, 2026 via video conferencing to vote for these proposals. Shareholders as on July 28 would be eligible to vote for the same.

On another note, Apollo Micro Systems is likely to be one of the beneficiaries of the Defence Acquisition Council's ₹52,000 crore procurement plan for the Indian Army, Navy and Air Force.

For the Army, the DAC cleared the procurement of the AKASH TARANG Anti-UAV Electronic Warfare System, which aims to protect military assets against hostile drones. Meanwhile, for the Indian Navy, the DAC has given its nod for the procurement of Multi-Influence Ground Mines (MIGM), designed to restrict adversary naval manoeuvres.

Apollo Micro Systems is among the companies expected to benefit from the programmes.

Shares of Apollo Micro Systems were tradinf 4.6% lower at ₹404.25 apiece at 9.50 am on Tuesday. The stock has gained 46.5% so far this year.

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