Apollo Micro Systems Increases Authorized Capital and Launches Preferential Allotment of Equity Shares and Convertible Warrants

Apollo Micro Systems Increases Authorized Capital and Launches Preferential Allotment of Equity Shares and Convertible Warrants​

Apollo Micro Systems Limited announced several key corporate actions following the Board of Directors meeting held on July 6, 2026. The company approved a significant increase in authorized capital, alongside approving preferential allotments for both equity shares and convertible warrants to various groups of investors.

The Board resolution included increasing the Authorized Capital of the Company from ₹ 45,00,00,000 (Rupees Forty Five Crores Only), divided into 45,00,00,000 Equity Shares of ₹ 1/- each, to ₹ 63,00,00,000 (Rupees Sixty Three Crores Only). This increase involves the addition of ₹ 18,00,00,000 (Eighteen Crores Only), which will be divided into 18,00,00,000 Equity Shares of ₹ 1/- each.

Details of Preferential Allotments​

The company also approved the issuance of two types of securities through a preferential allotment mechanism: equity shares and convertible warrants.

For the preferred equity share allotment, the Company authorized the issue of up to 2,28,30,902 Equity Shares of ₹ 1/- each at an Issue Price of ₹ 416.60 per share. The aggregate amount for this issuance is set at ₹ 951,13,53,825. This tranche was targeted at select groups of non-promoter individuals and entities.

Simultaneously, the Board authorized the issue of up to 5,69,15,380 Convertible Equity Warrants (Warrants). These warrants were offered at a price of ₹ 416.60 per warrant, accumulating an aggregate amount of ₹ 2,371,09,47,329. The warrants are convertible into one fully paid-up equity share of ₹ 1/- within a period of twelve months from the date of allotment and were offered to both Promoter Group members and identified Non-Promoter Persons or Entities. It was noted that an amount equivalent to 25% of the total issue size will be called upfront from the Proposed Warrant Allottees.

A summary of the capital structure changes and allotments is provided below:

Governance and Operational Approvals​

The Board meeting addressed several governance matters. Acuité Ratings & Research Limited, a SEBI registered Credit Rating Agency, was appointed as the Monitoring Agency to oversee the use of proceeds generated from the Preferential Issue.

Additionally, the Board granted authorization for future actions under the Companies Act, 2013, subject to approval by members at an ensuing general meeting. These authorizations include:

• Borrowing monies exceeding the Paid-Up Share Capital and Free Reserves.
• Creating security as per Section 180(1)(a) of the Companies Act, 2013.
• Giving Loans and Guarantees or making investments under Section 186 of the Companies Act, 2013.

The Board meeting was held from 4:30 P.M. (IST) on July 6, 2026, and concluded at 12:05 A.M. (IST) on July 7, 2026.

APOLLO Stock Price Movement​

Shares of Apollo Micro Systems Limited slipped on Monday, settling at ₹423.85 after the stock shed 6.23% from the previous close. The equity saw heavy trading, recording a volume of 31.81 million as it finished well below its intraday high of ₹461.35.