Defence stock-Apollo Micro Systems allots 28,89,044 equity shares pursuant to the exercise of warrants allotted on a preferential basis!

Apollo Micro Systems Limited has announced the allotment of 28,89,044 Equity Shares with a face value of Re 1 each on December 2, 2025, following the exercise of an equivalent number of warrants issued on a preferential basis. This allotment was approved by the Board's Securities Allotment Committee upon receiving the balance amount, or "Warrant Exercise Price," aggregating to Rs 24,70,13,262 from eight specific warrant holders. The warrants were originally issued at an issue price of Rs 114 each, with Rs 85.50 being paid upon conversion. Consequently, the issued and paid-up capital of the company has increased to Rs 35,72,80,744, and the newly allotted equity shares rank pari passu with the existing shares.

Additionally, the company has been granted a significant Industrial Explosives and Manufacturing License by the DPIIT, Government of India, valid for 15 years, authorising the company to manufacture high-tech Defence items at its Hyderabad facility. This crucial approval allows AMSL to produce Defence Aircraft for Unmanned Helicopters (UAS), including Logistics and attack systems, with trials expected soon, as well as Allied Defence Equipment such as Inertial Navigation Systems (INS) (covering MEMS, FOG, and RLG-based solutions) and complete Radar Equipment along with all associated subsystems. The license is a necessary prerequisite that significantly positions AMSL for existing and future manufacturing opportunities with the Ministry of Defence (MoD), accelerating its contribution to India's indigenous defence sector.

About the Company

Apollo Micro Systems Limited, a 40-year-old pioneer in defence technology, specialises in the design, development, and manufacture of advanced electronic, electro-mechanical, and engineering systems. With multi-domain, multidisciplinary capabilities and robust infrastructure, the company is equipped to build cutting-edge defence technologies and produce them at scale for national strategic needs

Apollo Micro Systems Limited (APOLLO) announced its Q2FY26 standalone and consolidated results, showing exceptional momentum. The company delivered a historic high quarterly Revenue, surging 40 per cent YoY to Rs 225.26 crore, up from Rs 160.71 crore in Q2FY25, driven by robust order execution. Operational excellence was clear as EBITDA grew 80 per cent to Rs 59.19 crore, with the margin expanding by 600 basis points to 26 per cent. This translated strongly to the bottom line, with Profit After Tax (PAT) soaring 91 per cent YoY to Rs 30.03 crore, and the PAT margin improving to 13.3 per cent. These results underscore the company’s strategic focus and its strengthened position in the defence ecosystem, bolstered by investments in indigenous technologies and alignment with national priorities like Atmanirbhar Bharat.

Beyond the financial achievements, Apollo Micro Systems marked a significant step toward becoming a fully integrated Tier-1 defence OEM with the acquisition of IDL Explosives Ltd. This move expands both manufacturing capabilities and the solutions portfolio across India's defence supply chain. Looking ahead, the company forecasts strong organic growth, expecting core business revenue to grow at a CAGR of 45 per cent to 50 per cent over the next two years. Recent geopolitical events have further accelerated demand for their indigenous defence solutions, with several systems successfully tested. Apollo Micro Systems remains focused on innovation, precision delivery, and strategic partnerships, actively shaping India’s self-reliant and technologically advanced defence infrastructure.

The company is part of the BSE Small-Cap Index, with a market cap of over Rs 9,000 crore. The stock gave multibagger returns of 900 per cent in just 3 years and a whopping 2,245 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.