Multibagger defence stock Apollo Micro Systems will remain in focus in Monday’s trading session after the company announced that it will raising ₹3,322 crore through fresh equity issuance.
The multibagger defence stock closed 2.65% higher at ₹418.20 apiece on Friday.
Apollo Micro Systems fundraising details
In an exchange filing dated 11 July, Apollo Micro Systems that the company would be raising a total of ₹3,322 crore via preferential issue.
The preferential issue will comprise 2,28,30,902 equity shares worth a total of ₹951.13 crore and 5,69,15,380 convertible equity warrants aggregating ₹2,371.09 crore.
According to the filing, the equity shares are proposed to be allotted at an issue price of ₹416.60 per share to 55 investors.
Meanwhile, the warrants will also be issued to 93 investors at a price of ₹416.60 per warrant. Each warrant can be converted into one fully paid-up equity share with a face value of ₹1. The conversion can be exercised in one or more tranches within 12 months from the date of allotment.
In an another exchange filing on 9 July, the company said it has entered into a definitive share purchase agreement with Premier Explosives to acquire the promoters’ 41.33% stake in the company through an all-cash deal worth nearly ₹1,550 crore.
Premier Explosives is engaged in the high-energy materials business, manufacturing rocket motors for defence and aerospace applications, along with countermeasures and munitions. The acquisition is expected to enhance Apollo Micro Systems’ capabilities in the defence and aerospace segments by combining its defence systems expertise with Premier Explosives’ strengths in energetic materials.
The deal is expected to be completed by the quarter ending December 2026, subject to regulatory and shareholder approvals, customary closing conditions, and other required clearances. Following the completion of the transaction, Premier Explosives will become a part of Apollo Micro Systems while continuing to operate under its existing brand, benefiting from greater scale and growth prospects.
Apollo Micro Systems share price trend
Apollo Micro Systems share price trend has remained largely positive despite weak market sentiments. The multibagger defence stock has slipped 9.22% in a week, however, has gained 2.64% in a month.
The defence stock has delivered 48% returns on year-to-date (YTD) basis and 119.14% returns in a year.
Looking at the broader level. the defence stock has increased its investors wealth by giving multibagger returns of 787.19% in three years and 3,525% in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
