Apollo Micro Systems Limited’s board has approved a plan to raise ₹3,322 crore through a preferential allotment of equity shares and warrants to strengthen its capital base. The issuance includes up to 22,830,902 equity shares and up to 56,915,380 convertible equity warrants, both priced at ₹416.60 per unit. The equity shares will be allotted to a select group of non-promoter investors, while the warrants will be issued to the promoter group and identified non-promoter persons.

The preferential allotment of equity shares aggregates to ₹951,13,53,825, with the issue price including a premium of ₹415.60 per share. The warrants issue totals ₹2,371,09,47,329, with each warrant convertible into one equity share within 12 months of allotment. Investors must pay 25% of the warrant subscription price upfront, while the entire preferential allotment price for equity shares is payable at the time of application.

Capital Increase and Regulatory Approvals

To facilitate the issuance, the board approved increasing the authorized share capital from ₹45 crore to ₹63 crore. This involves creating an additional 18 million equity shares of ₹1 each, ranking pari-passu with existing shares. The proposals are subject to approval from regulatory and statutory authorities, as well as the company's members.

Acuité Ratings & Research Limited has been appointed as the monitoring agency to oversee the utilization of the proceeds from the preferential issue. The board also authorized the company to borrow monies exceeding its paid-up share capital and free reserves, create security, and provide loans or guarantees under Sections 180 and 186 of the Companies Act, 2013, pending shareholder approval.

Shareholder Meeting Details

The board scheduled an Extraordinary General Meeting for August 4, 2026, via video conferencing. Ms. Sridevi Madati of M/s. MNM & Associates was appointed as the scrutinizer for the e-voting process. July 28, 2026, has been fixed as the cut-off date to determine member eligibility for voting at the meeting.

Breakdown of Allotments

Apollo Micro Systems Limited has scheduled a board meeting for July 6, 2026, at its registered office in Hyderabad to consider the preferential allotment of equity shares and convertible securities, including warrants. The board will evaluate the proposal under the SEBI (ICDR) Regulations, 2018, and determine the issue price as permitted by applicable laws. The decision is subject to regulatory and statutory approvals, including shareholder consent.

The meeting agenda includes the issuance of securities on terms and conditions deemed appropriate by the board. This strategic move aims to raise capital through the preferential route, pending necessary clearances. The board's discretion will guide the final structure of the allotment.

Concurrently, the company has announced the closure of the trading window for designated persons and their immediate relatives. The window will shut from July 1, 2026, until 48 hours after the declaration of the unaudited financial results for the quarter ending June 30, 2026. This measure aligns with the company's Code of Conduct for Prevention of Insider Trading.

The closure ensures compliance with insider trading regulations during the sensitive period surrounding the board meeting and financial results announcement. The restriction applies to all equity share dealings by the specified personnel.

The board meeting will also address other agenda items or matters permitted by the chair. The outcomes will be subject to disclosure requirements mandated by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.