Noida, July 7 (APAC Media): Defence electronics company Apollo Micro Systems Ltd has approved a fundraising plan of more than ₹3,322 crore through a combination of preferential equity share issuance and convertible warrants, the company said in a regulatory filing.
The company’s board, at its meeting held on July 6, approved an increase in the authorised share capital to ₹63 crore from ₹45 crore by creating an additional 18 crore equity shares of Re 1 each.
Following the increase, the authorised share capital will comprise 63 crore equity shares of Re 1 each, with the new shares ranking pari passu with the existing equity shares.
The board also cleared the issuance of up to 2,28,30,902 equity shares on a preferential basis to select non-promoter investors at an issue price of ₹416.60 per share, comprising a face value of Re 1 and a premium of ₹415.60 per share.
Govt to Sell Up to 5.04% Stake in Cochin Shipyard via ₹1,856 Crore Offer for Sale
The preferential issue is expected to raise up to ₹951.13 crore.
The fundraising comes at a time when India’s defence manufacturing industry is witnessing increased demand due to government initiatives aimed at promoting indigenous production and reducing dependence on imports.
Companies operating in defence electronics have benefited from rising procurement opportunities and investments in advanced technologies.
Apollo Micro Systems has emerged as one of the closely tracked companies in the defence sector, with investors focusing on its order pipeline, business expansion and financial performance.
The company provides electronic systems and subsystems for applications including missiles, radar systems, communication equipment and other strategic defence platforms.
E25 Ethanol Petrol Rollout Likely in Phases Amid E20 Fuel Concerns: Report
The proposed preferential issue is expected to provide the company with additional capital to expand manufacturing capabilities, enhance research and development activities and support the execution of future defence projects. The company has been increasing its focus on strengthening capabilities in high-growth areas linked to defence modernisation.
Apollo Micro Systems has previously raised capital through preferential allotments. In June 2025, the company completed an allotment of equity shares and convertible warrants, raising funds from investors including promoter group entities and other participants.
The latest announcement has drawn attention from market participants, given the company’s status as a multibagger stock in the defence segment over the years.
However, analysts and investors are expected to monitor the impact of the fundraising on earnings, shareholding patterns and future growth prospects.
Rupee Gains 15 Paise to ₹95.28 Against US Dollar in Early Trade
The company’s board has also approved measures related to increasing authorised share capital to facilitate the proposed issue. The completion of the transaction will depend on shareholder approval and compliance with applicable regulatory requirements.
India’s defence sector has been a key focus area for investors amid rising government spending, a push for domestic manufacturing and growing demand for electronic warfare and communication systems.
Apollo Micro Systems aims to leverage these opportunities by expanding its capabilities and strengthening its position in the defence technology space.
The company’s latest capital-raising initiative marks a significant step towards funding its long-term expansion strategy as it seeks to capitalise on the growing defence and aerospace ecosystem in India.
–ENDS–
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
Also Read:
