Apollo Micro Systems Says No Deviation In Preferential Issue Fund Usage; Shares Rise 8.64%

Mumbai, May 18: Apollo Micro Systems informed stock exchanges that there was no deviation or variation in the utilisation of proceeds raised through its preferential issue.

The company stated that proceeds received from the preferential issue had been utilised in line with the objects approved by shareholders and disclosed in the explanatory statement accompanying the Extra-Ordinary General Meeting notice dated January 09, 2025, according to a regulatory filing submitted under Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As per the exchange disclosure dated May 18, 2026, Apollo Micro Systems said ₹185.13 crore received during the quarter ended December 31, 2025, representing 75% warrant application money towards 2,16,52,792 warrants, had been utilised during the quarter ended March 31, 2026.

The company further clarified that no amount was received during the March 2026 quarter towards conversion of warrants. It added that the Audit Committee reviewed and approved the utilisation statement and confirmed there was no deviation in deployment of funds.

According to the annexure filed with exchanges, the preferential issue proceeds were allocated towards working capital requirements, research and development expenditure for futuristic technologies, investments in subsidiaries and general corporate purposes.

The filing disclosed that Acuite Ratings and Research Limited acted as the monitoring agency for the issue. The company also reported that there were no adverse comments from the Audit Committee or auditors regarding utilisation of funds.

Apollo Micro Systems Share Price Impact

Apollo Micro Systems share price witnessed strong buying activity on May 18, 2026, following the disclosure and broader momentum in defence-linked counters.

The stock closed at ₹320.00 on the NSE, up ₹25.45 or 8.64% compared with the previous close of ₹294.55. As of 3:30 PM IST on May 18, 2026, the stock had touched an intraday high of ₹320.35 and a low of ₹283.25 during the session.

According to exchange data, the company’s market capitalisation stood at approximately ₹11.13 crore at the close of trade, while the stock remained below its 52-week high of ₹354.70.

The regulatory clarification on fund utilisation comes at a time when investors are closely monitoring capital allocation and execution visibility among listed defence and electronics manufacturing companies.

Company Background

Apollo Micro Systems operates in the defence electronics and aerospace systems segment. The company develops mission-critical electronic and electro-mechanical solutions catering primarily to defence, homeland security and space applications.

Its product portfolio includes avionics systems, underwater weapon systems, communication systems, electronic warfare products and specialised engineering solutions. The company supplies components and integrated systems for government agencies and defence establishments.

The company has also been expanding its research and development capabilities while pursuing manufacturing scale-up initiatives supported through capital raising activities, including preferential allotments and warrants.

Conclusion

The latest filing from Apollo Micro Systems indicates that proceeds from the preferential issue have been deployed in accordance with stated objectives without any deviation under applicable SEBI regulations.

The disclosure provides additional regulatory clarity regarding utilisation of capital raised through warrants and preferential allotments. Market participants appeared to respond positively, with the stock ending sharply higher on May 18, 2026.

Source:

• https://www.nseindia.com/get-quote/equity/APOLLO/Apollo-Micro-Systems-Limited
• https://nsearchives.nseindia.com/corporate/APOLLO_18052026153832_AMS_SOD.pdf