Apollo Micro approves ₹3,322 cr preferential issue
The defence electronics firm will issue equity shares and warrants at ₹416.60 each to investors like Tata Mutual Fund and Saint Capital. The raise is 21% of its market cap.
— 3 earlier stories on Apollo Micro Systems Ltd. →What's new
- Board approved raising up to ₹3,322 cr via preferential issue of equity and warrants.
- Equity issue: ₹951 cr; warrants: ₹2,371 cr at ₹416.60 per security.
- Allottees include Saint Capital, Tata Mutual Fund, Nautilus, Maestro, Opal Global.
Why this matters
For a company with a market cap of ₹14,284 cr, this 21% raise is unusually large. The simultaneous authorization of borrowing beyond paid-up capital signals aggressive growth or acquisition plans. Institutional heavyweights add credibility, but dilution from full warrant conversion will be substantial.
What we're watching
- Shareholder vote on August 4 for the preferential issue.
- Deployment of funds - likely M&A or large defence orders.
- Dilution impact: equity issue alone is 6%; warrant conversion could add more.
The full read
Apollo Micro Systems just drew the blueprint for its next chapter: ₹3,322 crore in new capital, a sum equal to 21% of its market cap. The board approved a preferential issue of equity shares and convertible warrants to institutional heavyweights – Tata Mutual Fund, Saint Capital, Nautilus, Maestro, and Opal Global – at ₹416.60 per security. The equity slice is ₹951 crore; warrants add ₹2,371 crore. Dilution is real: 6% from the equity piece alone, and more if warrants convert. The company also authorised borrowing beyond its paid-up capital, a signal that management has something bigger in mind, perhaps a transformational acquisition or a multi-year defence order. The shareholder vote on August 4 is the next test. What this hinges on is whether the capital, together with the ₹1,432 crore order book, can turn the ₹293 crore quarterly revenue into a launchpad, not a peak.
Questions answered
- Why is Apollo Micro raising ₹3,322 crore?
- The board approved the raise to fund growth, likely for large defence orders or acquisitions. It also authorized increased borrowing powers, indicating aggressive plans.
- Who are the allottees in this preferential issue?
- Institutional investors such as Saint Capital Fund, Tata Mutual Fund, Nautilus Private Capital, Maestro Emerging Fund, and Opal Global Diversified Fund, among others.
- What is the issue price and expected dilution?
- The issue price is ₹416.60 per security. The equity portion alone causes about 6% dilution; full conversion of warrants would add substantial further dilution.
- What does this mean for existing shareholders?
- Immediate dilution from the equity issue, but if deployed effectively, it could boost earnings. The borrowing authorization suggests the company is betting on big projects.
- When will shareholders vote on the proposal?
- A general meeting has been scheduled for August 4 to seek shareholder approval.
- How significant is this raise relative to the company's size?
- At ₹3,322 crore, it equals about 21% of Apollo Micro's market cap of ₹14,284 crore, making it exceptionally large for a mid-cap defence firm.
Apollo Micro Systems Ltd.
Latest quarter · Mar 2026
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All notes on APOLLO →- 7 Jul 2026 · 12:22 AM IST Apollo Micro approves ₹3,322 cr preferential issue
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