Apollo Micro Systems clarifies EGM notice for preferential issue
- Apollo Micro Systems submitted clarifications to NSE regarding EGM notice observations
- Proposed preferential issue involves 2.28 crore equity shares and 5.69 crore warrants
- Opal Global Diversified Fund is set to receive 1.2 crore equity warrants
- Promoter group members Chanakya and Kanishka Reddy Baddam will receive 1.3 crore warrants each
*this image is generated using AI for illustrative purposes only.
Apollo Micro Systems Limited has submitted clarifications to the National Stock Exchange regarding observations on its Extra-Ordinary General Meeting notice. The filing addresses disclosures for a proposed preferential issue involving 2,28,30,902 equity shares and 5,69,15,380 equity warrants.
The company responded to NSE letter No. NSE/LIST/56336, which raised queries on the explanatory statement and notice content. Apollo Micro Systems stated that it has incorporated the requisite corrections and clarifications into its relevant disclosures to ensure compliance with SEBI Listing Regulations.
Allottee Shareholding Details
The company enclosed Annexure-1, detailing the pre and post-issue shareholding pattern of the proposed allottees. The list includes institutional investors, funds, and individual subscribers, all categorized as non-promoters except for two promoter group entities receiving warrants.
Key institutional allocations include:
| Allottee | Equity Shares | Equity Warrants | Post-Issue Holding (%) |
|---|---|---|---|
| Nautilus Private Capital Ltd | 25,00,000 | 25,00,000 | 1.121 |
| Maestro Emerging Fund PCC | 25,00,000 | 25,00,000 | 1.121 |
| Robust Knights Fund PCC | 25,00,000 | 25,00,000 | 1.121 |
| M7 Global Fund PCC | 25,00,000 | 25,00,000 | 1.121 |
| Cullinan Opprts Fund VCC | 25,00,000 | 45,00,000 | 1.569 |
| Opal Global Diversified Fund | - | 1,20,00,000 | 2.690 |
Promoter Group Participation
Two members of the promoter group are participating in the warrant portion of the issue. Chanakya Reddy Baddam and Kanishka Reddy Baddam are each set to receive 1,30,50,000 equity warrants. Their pre-issue holding stands at 84,00,600 shares each (2.261%), which will increase to a post-issue holding of 2,14,50,600 shares (4.809%) upon conversion.
Regulatory Compliance
The clarification was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director Karunakar Reddy Baddam signed the digital submission dated September 22, 2026, confirming that the updated table showing the shareholding pattern has been taken on record by the stock exchanges.
Historical Stock Returns for Apollo Micro Systems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.53% | +5.21% | +5.77% | +104.78% | +22.50% | +3,394.42% |
How will the capital raised from the preferential issue and warrant conversions impact Apollo Micro Systems' ability to fund its upcoming defense contracts and R&D initiatives?
What are the potential dilution effects on existing minority shareholders given the significant increase in promoter group holdings upon warrant conversion?
Are there any regulatory or strategic implications for the foreign institutional investors involved, considering their substantial allocation of equity warrants?
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