This leading defence company plans to raise ₹3,322cr
What's the story
Apollo Micro Systems, a leading player in the defense sector, has announced its plan to raise ₹3,322 crore through a preferential issue. The company will issue 2,28,30,902 equity shares and 5,69,15,380 convertible equity warrants at an issue price of ₹416.60 per share/warrant to a total of 148 investors. The announcement comes after the company's stock closed at ₹418.20 apiece on Friday, up by 2.65%.
Issue specifics
Issue to include equity shares and convertible equity warrants
The preferential issue will consist of 2,28,30,902 equity shares worth ₹951.13 crore and 5,69,15,380 convertible equity warrants aggregating ₹2,371.09 crore. The equity shares will be allotted to 55 investors at an issue price of ₹416.60 per share while the warrants will be issued to 93 investors at the same price per warrant. Each warrant is convertible into one fully paid-up equity share with a face value of ₹1 within a year from allotment date in one or more tranches.
Acquisition details
Apollo Micro Systems to acquire Premier Explosives's promoters' stake
In another exchange filing on July 9, Apollo Micro Systems announced a definitive share purchase agreement with Premier Explosives. The company will acquire the promoters' 41.33% stake in an all-cash deal worth nearly ₹1,550 crore. The acquisition is expected to enhance Apollo's capabilities in defense and aerospace segments by combining its expertise with Premier Explosives's strengths in energetic materials.
Deal completion
Deal expected to close by December quarter
The deal is expected to be completed by the December 2026 quarter, subject to regulatory and shareholder approvals, customary closing conditions, and other required clearances. After the transaction's completion, Premier Explosives will become a part of Apollo Micro Systems while continuing to operate under its existing brand. This move is expected to give both companies greater scale and growth prospects in the defense sector.