Shares of Apollo Micro Systems surged over 6 percent intraday on May 15 following the allotment of preferential shares. The stock, a standout performer in the defence segment, has rallied an eye-popping 1450 percent over the past five years, reflecting strong fundamentals, aggressive expansion, and robust investor confidence.
Preferential Issue Sparks Buying Momentum
Apollo Micro Systems informed the exchanges that it has made critical updates to its Extraordinary General Meeting (EGM) notice and corrigendum, issued earlier in January 2025. The company clarified that for convertible equity warrants, 25 percent of the issue proceeds would be collected at the time of allotment, with the remaining 75 percent due within six months. The entire amount is expected to be utilised within nine months in line with SEBI’s ICDR regulations.
Further disclosures included updates on shareholding patterns post-issue. Anshu Bhargava’s stake increased from 105,000 shares (0.034 percent) to 630,000 shares (0.168 percent), while Vasudeva Rao Dhanekula’s holding rose from 25,000 shares (0.008 percent) to 125,000 shares (0.033 percent). The company also corrected earlier references in its filings, removing the phrase “and Private Sector” in one section of the corrigendum and addressing regulatory observations made by NSE on May 13.
Strategic Acquisition and Strong Financial Performance
In a major strategic move earlier this year, Apollo Defence Industries Pvt Ltd, a wholly-owned subsidiary of Apollo Micro Systems, signed an all-cash deal to acquire 100 percent equity in IDL Explosives Ltd from the Hinduja Group for ₹107 crore. Established in 1961, IDL Explosives is India’s first indigenous explosives manufacturer, with a legacy of over six decades in serving the mining and infrastructure sectors.
This acquisition is expected to significantly enhance Apollo’s position in the defence manufacturing value chain by combining its electronics capabilities with IDL’s munitions expertise. The integrated entity aims to offer end-to-end defence solutions, reduce external dependencies, and strengthen its presence in global markets.
Financially, the company has posted impressive growth. In Q3FY25, net sales surged 62.5 percent year-on-year to ₹148.39 crore, while profit after tax (PAT) rose 83.1 percent to ₹18.24 crore. For the nine-month period, net sales grew 69.5 percent to ₹400.30 crore and PAT jumped 133.2 percent to ₹42.40 crore. In FY24, annual net sales rose 24.91 percent to ₹371.63 crore, and PAT climbed 66.01 percent to ₹31.11 crore.
Stock Performance: A Multibagger in the Making
The stock hit an intraday high of ₹139.50 on May 15, marking a 6.4 percent spike, and ended the day 5 percent higher. It is currently about 11 percent below its 52-week high of ₹157.00, recorded in January 2025, and has gained 58 percent from its 52-week low of ₹88.10 in October 2024.
Over the past year, the scrip has delivered a 26 percent return. In May alone, the stock is up 17 percent, recovering from a 4 percent dip in April. It had gained 9 percent in March after an 18 percent fall in February and a strong 19 percent rise in January.
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