Shares of Apollo Micro Systems declined more than 5 percent on Tuesday, extending the previous session’s similar fall, after the defence electronics company approved a Rs 3,322 crore fund-raising plan through a preferential allotment of equity shares and convertible warrants. The announcement seemingly prompted investors to book profits following the recent rally in the stock.
Apollo Micro Systems stock declined as much as 5.5 percent to Rs 400.50 in morning trade, placing it among the top losers on the BSE Smallcap index. The stock had already fallen more than 5 percent on Monday as investors booked profits ahead of the board meeting to consider the fund-raising proposal. However, it remains up about 45 percent so far in 2026, significantly outperforming the Nifty 50, which is down around 6.5 percent over the same period.
The company's board approved raising up to Rs 3,322 crore through the issuance of equity shares and convertible warrants to a wide base of investors. Apollo Micro Systems will issue up to 2.28 crore equity shares to 55 investors at Rs 416.60 per share, raising around Rs 951 crore. The proposed allottees include Saint Capital Fund, which will receive 50 lakh shares, and Tata Mutual Fund, which has been allotted 12 lakh shares.
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In addition, the company will issue up to 5.69 crore convertible warrants to 93 investors at Rs 416 per warrant to raise up to Rs 2,371 crore. Among the allottees are promoter family members Chanakya Reddy Baddam and Kanishka Reddy Baddam, who together will receive 2.61 crore warrants.
Apollo Micro Systems said shareholders will vote on the proposals at an extraordinary general meeting scheduled for August 4 through video conferencing. Investors holding shares as of July 28 will be eligible to participate in the voting process.
The decline follows a volatile few sessions for the stock. Apollo Micro Systems had rallied over the previous two trading sessions after the Defence Acquisition Council approved acquisition proposals worth around Rs 52,000 crore for the armed forces, including programmes such as the AKASH TARANG Anti-UAV Electronic Warfare System for the Army and Multi-Influence Ground Mines for the Navy. The company is viewed as one of the potential beneficiaries of these procurement programmes.
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