Apollo Micro Systems shares in focus as defence firm raises capital base

Apollo Micro Systems shares are in focus today following the announcement of bolstering the capital base with Rs 1.03 crore warrant conversion. Shares of Apollo Micro Systems closed 1.6% lower at Rs 271.20 on Wednesday. Market cap of the firm stood at Rs 9,338 crore. 

The stock has clocked a 95.39% gain over the last six months and surged 125.9% year to date.

The company has strengthened its capital structure through a warrant conversion. The defence firm announced the allotment of 1,21,47,964 equity shares, resulting from the conversion of warrants by six allottees, including promoter group members and directors.

The warrant conversion has resulted in capital inflows, with Apollo Micro Systems receiving Rs 103.86 crores as the warrant exercise price. The move has led to an increase in the company's paid-up capital, which has risen from Rs 34.22 crore to Rs 35.44 crore, the company said. 

The newly allotted shares will rank pari-passu with the existing equity shares of the company, carrying equal rights in terms of dividends and voting. This allotment represents a dilution of approximately 3.43% based on the expanded equity base.

Apollo Microsystems is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company. Its designs, develops and sells high-performance, mission and time critical solutions to defence, space and home land security for ministry of defence, government-controlled public sector undertakings and private sectors.