Apollo Micro Systems Limited has scheduled an Extraordinary General Meeting (EGM) on August 4, 2026, to seek shareholder approval for raising ₹3,322.23 crore through a preferential issue of equity shares and convertible equity warrants. The company proposes to issue up to 22,830,902 equity shares and 56,915,380 warrants at a price of ₹416.60 per unit. The proceeds are intended for strategic acquisitions, debt repayment, and working capital requirements.

Capital Increase and Allotment Details

The board has approved increasing the authorized share capital from ₹45 crore to ₹63 crore by creating 18 million additional equity shares. The preferential allotment price of ₹416.60 includes a premium of ₹415.60 per share. The equity shares are proposed to be allotted to 55 non-promoter investors, while the warrants will be issued to 93 investors, including the promoter group and non-promoters. Each warrant is convertible into one fully paid-up equity share of ₹1 face value within 12 months of allotment.

Utilization of Proceeds

The company plans to utilize the net proceeds towards exploring potential acquisition opportunities, repaying existing debts of the company and its subsidiaries, and meeting working capital requirements for Fiscal 2027 and Fiscal 2028. Additionally, up to 25% of the gross proceeds may be utilized for general corporate purposes. Acuité Ratings and Research Limited has been appointed as the monitoring agency for the utilization of proceeds.

Meeting and Voting Details

The EGM will be held via video conferencing on August 4, 2026, at 11:30 A.M. IST. Remote e-voting commences on July 31, 2026, and concludes on August 3, 2026. July 28, 2026, is the cut-off date to determine member eligibility for voting. Ms. Sridevi Madati of M/s. MNM & Associates has been appointed as the scrutinizer for the e-voting process.

Breakdown of Proposed Allotments

Apollo Micro Systems Limited has entered into a definitive share purchase agreement to acquire a 41.33% stake in Premier Explosives Limited for ₹1,550 crore. The all-cash transaction involves the purchase of promoter shares and is expected to close in the third quarter of FY26, subject to regulatory and shareholder approvals. This strategic move aims to combine complementary capabilities in defence systems and energetic materials, enabling operational efficiencies and broader participation in defence and space-related programmes.

The Board of Directors of Apollo Micro Systems approved the acquisition at its meeting held on July 9, 2026. The deal is not a related party transaction, and none of the promoter or group companies have any interest in the entity being acquired. Upon completion, the acquirer will make a mandatory open offer to the eligible public shareholders of the target company to acquire up to 26% of the fully diluted voting equity share capital, in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The open offer price is set at ₹698 per equity share.

Transaction Details and Financials

The total consideration is valued at ₹1,550 crore, subject to customary closing adjustments as per the share purchase agreement. The acquisition is conditional upon receiving mandatory regulatory clearances, including approval from the Competition Commission of India under the Competition Act, 2002. The target company, Premier Explosives Limited, is engaged in manufacturing solid propellants for missile programs and supplying countermeasure systems to the defense, aerospace, and mining sectors.

Target Company Profile

Premier Explosives Limited was incorporated on February 14, 1980, and operates within India. The company specializes in high-energy materials and undertakes operation and maintenance services of solid propellant plants at the Sriharikota Centre of ISRO and Solid Fuel Complex at Jagdalpur. The financial metrics for the year ended March 31, 2026, indicate a turnover of ₹38,834.14 lakh and a net worth of ₹29,042.78 lakh.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE713T01028/73930a234c90469a.pdf