Apollo Micro Systems Ltd Approved Shares & Warrants Allotment
In a significant development, Apollo Micro Systems Ltd (AMSL) has received in-principle approvals from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for a substantial preferential allotment. This move is expected to have a profound impact on the company’s financials and its future growth prospects.
As per the allotment, AMSL will issue 270.43 lakh equity shares at a price of ₹114 each, totaling ₹308.29 crore, to 53 non-promoters. This is a significant infusion of capital that will help the company to strengthen its financial position and pursue its growth plans.
In addition to the equity shares, AMSL has also allotted 380.67 lakh convertible equity warrants at a price of ₹114 each, amounting to ₹108.49 crore, to 30 investors, comprising a mix of promoter and non-promoter entities. These warrants can be converted into equity shares at a later date, providing additional flexibility to the company and its investors.
The preferential allotment is a testament to AMSL’s strong fundamentals and its potential for growth. The company has been delivering impressive financial performance in recent years, with its stock returning a staggering 2250% over the past few years, making it a multibagger return.
AMSL is a leading company in the defense sector, and its products and solutions are used by the Indian Armed Forces and other defense organizations. The company’s expertise lies in the design, development, and manufacturing of electronic systems, including Radar and Communication systems, for the defense and aerospace sectors.
The preferential allotment is expected to help AMSL to further strengthen its position in the defense sector and pursue its growth plans. The company has been expanding its product portfolio and increasing its presence in the international market, and the additional capital infusion will help it to accelerate this growth.
The allotment is also expected to have a positive impact on AMSL’s listing on the stock exchanges. The company’s stock is currently listed on the BSE and the NSE, and the preferential allotment is expected to improve its liquidity and trading volumes.
In conclusion, the preferential allotment by AMSL is a significant development that is expected to have a profound impact on the company’s financials and its future growth prospects. The additional capital infusion will help the company to strengthen its financial position and pursue its growth plans, and it is expected to have a positive impact on its listing on the stock exchanges.
