Apollo Micro Systems Limited, a key player in the technology sector, has announced a significant capital raise through the conversion of warrants into equity shares. The company's strategic move not only strengthens its financial position but also signals confidence from its investors, including promoter group members.

Warrant Conversion Details

The company has allotted 65,69,000 equity shares of Re. 1/- each upon the conversion of warrants by three investors. This conversion has resulted in raising Rs. 56.16 crore as the warrant exercise price. The details of the allotment are as follows:

Impact on Share Capital

As a result of this warrant conversion, Apollo Micro Systems' paid-up capital has increased from Rs. 33.57 crore to Rs. 34.22 crore. The newly allotted equity shares will rank pari passu with the existing equity shares of the company.

Extension of Conversion Deadline

The Board of Directors has extended the conversion deadline for the remaining 2,93,55,776 warrants. The new deadline for conversion has been set to June 30, 2026, extended from the previous date of December 1, 2025.

Warrant Conversion Progress

Out of the total 3,80,67,058 warrants initially issued, 87,11,282 warrants have been converted into equity shares of face value of Re. 1/- each to date. This recent conversion of 65,69,000 warrants is part of this ongoing process.

Implications for Investors

This development is significant for investors as it demonstrates:

1. Strong investor confidence in the company's future prospects.
2. An influx of fresh capital that could potentially be used for growth initiatives or debt reduction.
3. Increased skin in the game for the promoter group, aligning their interests more closely with those of other shareholders.

Investors should note that any remaining unexercised warrants will lapse if not converted within the stipulated timeframe, and the amount paid by the warrant holders on such warrants would be forfeited by the company.

As Apollo Micro Systems continues to navigate the dynamic technology landscape, this capital infusion and the extended conversion timeline for remaining warrants provide the company with enhanced financial flexibility and a strengthened capital base.

Apollo Micro Systems Limited , a player in the aerospace and defense sector, has announced the allotment of 35,088 equity shares following the conversion of warrants. This move comes as part of the company's ongoing preferential issue process.

Key Details of the Allotment

• Allottee: Mr. Piyush Bhupendra Gala (Non-Promoter)
• Number of Shares Allotted: 35,088
• Face Value: Re. 1 per share
• Issue Price: Rs. 114.00 per share (including a premium of Rs. 113.00)
• Total Amount Received: Rs. 40,00,032.00

Impact on Share Capital

Following this allotment, Apollo Micro Systems' paid-up capital has increased from Rs. 33,56,39,648.00 to Rs. 33,56,74,736.00, now consisting of 33,56,74,736 equity shares of Re. 1 each.

Warrant Conversion Details

The company had initially allotted 3,80,67,058 convertible equity warrants on a preferential basis. The current allotment represents a partial conversion of these warrants. Key points include:

• Conversion Price: Rs. 114.00 per warrant
• Upfront Payment: 25% (Rs. 28.50 per warrant) received at the time of warrant subscription
• Balance Payment: 75% (Rs. 85.50 per warrant) received for the converted warrants

Utilization of Preferential Issue Proceeds

Apollo Micro Systems has confirmed that there has been no deviation in the utilization of the preferential issue proceeds, which totaled Rs. 434.80 crores. The funds are being used for:

1. Working capital requirements
2. Research and development
3. General corporate purposes

The company has utilized Rs. 4.13 crores for consultancy charges related to the preferential issue, which falls under general corporate purposes.

Monitoring Agency Report

Acuite Ratings & Research Limited, appointed as the monitoring agency, has submitted a report confirming the proper utilization of funds in line with the stated objectives.

Remaining Warrants

Out of the total warrants allotted:

• 21,07,194 warrants were converted previously
• 35,088 warrants have been converted in the current allotment
• The remaining unexercised warrants will lapse if not converted within six months from the date of allotment

This corporate action demonstrates Apollo Micro Systems' ongoing efforts to strengthen its capital base, potentially supporting its operations in the aerospace and defense sector. Investors and market watchers may want to keep an eye on how the company utilizes these funds to drive growth and innovation in its core business areas.