Apollo Micro Systems has approved raising Rs 3,322 crore through a preferential issue of equity shares and convertible warrants.
As part of the plan, the company will issue up to 2.28 crore equity shares at Rs 416.60 per share, including a premium of Rs 415.60, to select non-promoter investors. The equity issue is expected to raise about Rs 951.14 crore.
In its regulatory filing on Monday, the company said that the board has also approved the issue of up to 5.69 crore convertible equity warrants at Rs 416.60 per warrant, aggregating up to Rs 2,371.09 crore.
The warrants will be allotted to members of the promoter group and certain identified non-promoter investors. Each warrant can be converted into one equity share within 12 months from the date of allotment. Investors subscribing to the warrants will pay 25% of the issue price upfront.
Apollo Micro Systems increases authorised share capital
To facilitate the proposed fundraise, the board approved an increase in the company’s authorised share capital from Rs 45 crore to Rs 63 crore by creating an additional 18 crore equity shares of face value Rs 1 each. The new shares will rank pari passu with the existing equity shares.
The preferential issue is subject to approvals from shareholders and other regulatory authorities.
Apollo Micro Systems fixes July 28 as record date for EGM voting
Apollo Micro Systems will seek shareholders’ approval for the fundraise and several related proposals at an Extraordinary General Meeting (EGM) scheduled for August 4, to be held through video conferencing and other audio-visual means.
The board also approved resolutions seeking shareholders’ approval to increase the company’s borrowing limits under the Companies Act, create security for borrowings, and provide loans, guarantees and investments under the applicable provisions of the law.
The company has fixed July 28 as the cut-off date to determine the eligibility of shareholders to vote at the EGM.
About Apollo Micro Systems
Apollo Micro Systems is a Hyderabad-based defence and aerospace company engaged in the design, development, assembly and testing of custom-built electronic and electro-mechanical solutions for mission-critical applications.
The company serves customers across the defence, aerospace, space, homeland security, railways, automotive and infrastructure sectors. It offers end-to-end capabilities spanning research and development, hardware and software design, manufacturing, system integration and testing, and supports strategic programmes for the Indian Armed Forces, DRDO and defence public sector undertakings.
Apollo Micro Systems share price
The share price of Apollo Micro Systems has plunged 5.14% in the intraday trading session. The stock has surged 103.59% in the last three months. On a year-to-date (YTD) basis the stock has gained 45.49%.
