Apollo Micro Systems Limited , a key player in the Indian defense and aerospace sector, has announced a significant change in its shareholding structure. Baddamkanishka Reddy, a member of the company's promoter group, has increased his stake in the company through a preferential allotment.

Shareholding Update

Mr. Reddy acquired 22,85,600 equity shares of Apollo Micro Systems Limited through a preferential allotment. This acquisition has resulted in a notable increase in his shareholding percentage:

Impact on Company's Share Capital

The preferential allotment has also led to an expansion in Apollo Micro Systems' equity share capital:

Company Financial Overview

Apollo Micro Systems has shown robust growth over the past few years, as reflected in its consolidated balance sheet:

The company's financial position indicates strong growth, with total assets more than doubling over the past five years. This growth aligns with the increased interest from the promoter group, as evidenced by the recent preferential allotment.

Implications

The increase in promoter shareholding through preferential allotment may be viewed as a positive signal by the market, potentially indicating the promoter's confidence in the company's future prospects. However, investors should conduct their own research and consider various factors before making investment decisions.

As Apollo Micro Systems continues to expand its presence in the defense and aerospace sectors, such corporate actions may play a crucial role in shaping the company's growth trajectory and market perception.

Apollo Micro Systems Limited has recently addressed a regulatory compliance issue by receiving and settling a compounding order from the Regional Director (South East Region), Hyderabad. This development comes in response to a violation of Section 148(6) of the Companies Act, 2013.

Violation Details

The company faced scrutiny for failing to file its cost audit report in Form CRA-4 within the prescribed timeframe, as mandated by Section 148(6) of the Companies Act, 2013. To resolve this non-compliance, Apollo Micro Systems took proactive steps by filing an application under Section 441 of the Companies Act, 2013 for compounding of the violation.

Settlement Process

The settlement process unfolded as follows:

Key Points of the Order

The Regional Director (South East Region), Hyderabad, issued the compounding order with the following key aspects:

1. The order was issued in response to the company's application dated August 2, 2025.
2. Compounding fees were imposed on the officers in default as prescribed under Section 441 of the Companies Act, 2013.
3. The Regional Director confirmed the receipt of the remitted amount in the order.

Impact on Company Operations

Apollo Micro Systems has stated that this regulatory settlement has no impact on its financial, operational, or other activities. The company's prompt action in addressing the non-compliance and settling the matter demonstrates its commitment to regulatory adherence.

Conclusion

This incident serves as a reminder of the importance of timely compliance with regulatory requirements for publicly listed companies. Apollo Micro Systems' swift action in resolving the issue through the compounding process highlights the company's responsiveness to regulatory matters.

Investors and stakeholders can take note of the company's proactive approach in addressing and resolving compliance issues, which is crucial for maintaining transparency and trust in the market.