Shares of Apollo Micro Systems Ltd (AMSL), a technology-based solutions provider in sectors such as infrastructure, transportation, aerospace and defence, among others, surged on Friday after the company announced that it has been granted a lifetime license by the government of India for the commercial manufacture of high-value strategic weapon systems and ammunition. According to the information shared with the exchanges, the license has been issued by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce & Industry. The license authorises the company to manufacture, assemble, and test a wide array of defence equipment with an annual production capacity of 1,000 units per category.
“This license is an important step in expanding the Company’s presence in the defence manufacturing sector,” said B Karunakar Reddy, Managing Director of Apollo Micro Systems.
AMSL share price
The stock started the trading session in green at Rs 244.95 against the previous close of Rs 242.30. However, it skyrocketed after the company shared details about receiving the license from the government. The counter gained to touch the high of Rs 281.90, representing a gain of Rs 39.6 or 16.34 per cent from the previous close.
Last seen, the stock was trading at Rs 280.70 with a gain of 15.85 per cent and the market cap of the company stood at Rs 10,027.41 crore.
On the National Stock Exchange (NSE), the stock started the trading session at Rs 244.45 against the previous close of Rs 242.17. Later, it touched the intraday high and low of Rs 281.95 and Rs 243.40, respectively.
License covers two primary categories
According to the information available, the license covers two primary categories for arms of calibre above 12.77mm
Category 1: Manufacturing of missiles, anti-tank guided missiles (ATGMs), torpedoes, underwater mines, safety arming mechanisms, and chaffs.
Category 2: Manufacturing of aerial bombs, rockets, and loitering munitions.
