Shares of Apollo Microsystems surged 10% to Rs 237.75 on BSE in intraday trade on Friday after the company’s board approved a preferential issue of warrants to promoters and non-promoter group personnel.
Shares of the defence company rose for the third day in a row, rising 34% during the period. Its offer is the highest since April 2018.
Apollo Microsystems announced Thursday at the market time that its board of directors approved the issuance of up to 10.1 million warrants over 18 months, each convertible into or exchanged for one share of the equity. The company will issue warrants for Rs 183.30 for a total amount of up to Rs 185.13 crore per warrant, the company said in an exchange filing.
When the warrants are issued, an amount equivalent to 25% of the total issued amount shall be summoned in advance by the people to be allotted. The company will allocate 4.62 million warrants to Mr Karunakar Reddy Baddam, the promoter and managing director of Apollo Micro Systems. The company said it would issue 1.9 million warrants to Mauritius-based Nexpact Limited and 1.2 million warrants to Maybank Securities Pte Ltd.
The stock has outperformed the market over the past month, surging 49%, while the S&P BSE Sensex lost 3.5%. Additionally, the stock has surged 80% over the past three months, compared with the benchmark’s 9% gain.
Apollo Microsystems is an electronics, electromechanical, engineering, manufacturing and supply company. It is involved in designing, developing and marketing high-performance, mission and time-critical solutions for defence, space and homeland security for the Department of Defense, government-controlled public sector enterprises and the private sector.
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In addition, the company has participated in several domestic missile projects, underwater electronic warfare, underwater missiles, surface-to-air missiles, nuclear missile projects, surface-to-surface missile projects, domestic submarine projects, and UAV long and short endurance, ship and space programmes.
