Defence Company Withdraws Issue of 2,45,00,700 Convertible Equity Warrants on a Preferential Basis to Promoter Group and to Certain Identified Non-Promoters
The stock gave multibagger returns of 725 per cent in just 3 years and a whopping 1,150 per cent in 5 years.
On Friday, shares of Apollo Micro Systems Ltd gained 0.92 per cent to Rs 92.95 per share from its previous closing of Rs 92.10. The stock’s 52-week high is Rs 147.50 per share and its 52-week low is Rs 88.10 per share.
The Company, having received in-principle approvals from the stock exchanges on November 14, 2024, for the issuance of 2,45,00,700 Convertible Equity Warrants, circulated the Private Placement Offer cum Application Letter on the same day. However, due to significant delays in the offer period, key proposed allottees, including Eminence Global Fund PCC- Eubilia Capital Partners Fund I, North Star Opportunities Fund VCC- Bull Value Incorporated VCC Sub-Fund & AG Dynamic Funds Limited (Multitude Growth Funds Limited), have withdrawn their consent to subscribe to the warrants. This withdrawal, impacting a substantial portion of the issue, has rendered the preferential issue non-viable. Consequently, the Board has approved the withdrawal of the entire preferential issue. The Company assures its stakeholders that this decision will not adversely affect its financial stability, operations, or future growth.
Apollo Micro Systems Ltd has secured several significant orders in recent months, including a proprietary order worth Rs 28.74 crore from Bharat Electronics Limited and CNA (OF) Pune, Indian Navy. Additionally, the company has been selected by the Armament Research and Development Establishment (ARDE), DRDO, for the Transfer of Technology (ToT) related to the production of PRACHAND Munition Hardware. Apollo Micro Systems has also received orders from Reliable Technosystems India Pvt Ltd (Rs 5.72 crore), Economic Explosives Ltd and ARDE-DRDO (Rs 4.70 crore), Munitions India Ltd (Rs 72.26 crore), Bharat Dynamics Limited (Rs 10.90 crore), and has been awarded a contract to develop Rocket Guided Bombs for Anti-Submarine Warfare (Rs 5.73 crore). These successes highlight the company's expertise in defence electronics and its growing market presence.
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Established in 1985, Apollo Micro Systems is at the forefront of creating, constructing, and validating crucial electronics and electro-mechanical solutions for sectors such as aerospace, defence, and space. The company is renowned for its commitment to research and development, resulting in notable projects such as torpedo-homing systems and underwater mines.
According to Quarterly Results, total income increased by 85 per cent to Rs 161.30 crore and profit after tax (PAT) increased by 140 per cent to Rs 15.73 crore in Q2FY25 compared to Q2FY24 while in its half-yearly results, the net sales increased by 74 per cent to Rs 253.09 crore and profit after tax (PAT) increased by 194 per cent to Rs 24.16 crore in H1FY25 compared to H1FY24. In its annual results, the net sales increased by 24.91 per cent to Rs 371.63 crore and profit after tax (PAT) increased by 66.01 per cent to Rs 31.11 crore in FY24 compared to FY23.
The company falls under the BSE Small-Cap Index with a market cap of over Rs 3,000 crore. In September 2024, DIIs took a fresh entry and bought 26,66,460 shares or 0.87 per cent stake in the company. The stock gave multibagger returns of 725 per cent in just 3 years and a whopping 1,150 per cent in 5 years. Investors should keep an eye on this aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.