Shares of Apollo Micro Systems, a technology-driven firm in the aerospace, defence, and homeland security sectors, are in focus as the company has approved a Rs 3,322 crore fund-raising plan through a preferential allotment of equity shares and convertible warrants. The development prompted investors to book profits in the stock, which had recently rallied. The stock started the trading session in the green and opened at Rs 427.05, up from the previous close of Rs 424.05 on the BSE. It jumped to touch the intraday high of Rs 430, up Rs 1.40. However, the stock witnessed selling pressure and touched the low of Rs 397.10, representing a fall of 6.35 per cent. Last seen, the stock was trading at Rs 401 with a drop of Rs 23.05, and the market cap of the company stood at Rs 14,344.03 crore.
Board takes these decisions
- The board has approved an increase in the authorised share capital of the company from Rs 45 crore to Rs 63 crore.
- In addition, the company has decided to issue 2,28,30,902 equity shares through a preferential issue at a price of Rs 416.60 per share (face value of Rs 1 and a premium of Rs 415.60), which will raise approximately Rs 951.14 crore.
- The board also approved the issuance of 56,915,380 convertible equity warrants. Each warrant will be priced at Rs 416.60 and will be convertible into one equity share of Rs 1 face value within 12 months. The company will raise approximately Rs 2,371.09 crore through this issue.
The company has set a target of raising Rs 3,322 crore through a preferential issue and convertible equity warrants.
These warrants will be offered on a preferential basis to the promoter group and select non-promoter investors. Investors acquiring warrants will be required to make an upfront payment of 25 per cent of the total issue amount at the time of issue.
More than 100% return in 3 months
According to BSE Analytics, this stock has doubled investors’ money in just three months, delivering returns of over 109 per cent. In the past six months, the stock has gained over 57 per cent.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
