Apollo Micro Systems Plans Massive Rs 3,322 Crore Fundraise

Apollo Micro Systems has announced a significant capital infusion plan, seeking to raise Rs 3,322 crore. This ambitious fundraise will be executed through a preferential issue involving both equity shares and convertible warrants.

The company's board approved the issuance of up to 2.28 crore equity shares at Rs 416.60 per share, a move expected to generate around Rs 951.14 crore. Additionally, up to 5.69 crore convertible equity warrants will be issued at the same price, with the potential to raise Rs 2,371.09 crore.

These warrants, convertible into equity shares within 12 months, will be offered to select promoter and non-promoter investors. To facilitate this, the authorized share capital is being increased from Rs 45 crore to Rs 63 crore. An Extraordinary General Meeting is scheduled for August 4 to obtain shareholder approval for the fundraise and related proposals.

The Hyderabad-based defence and aerospace firm aims to bolster its financial standing through this strategic move. The company's share price has shown recent volatility but has seen substantial gains over the past three months. Shareholder approval is pending for this significant financial undertaking.