Apollo Micro Systems clears US$129.1M share sale, ranking among India's largest chip-sector placements
What's the deal? Apollo Micro SystemsDealroom has a profile for this one. Try Dealroom →, an Indian defence and aerospace electronics maker, has approved a preferential issue of up to 2,28,30,902 equity shares at US$5.66 each, raising US$129.2M. The board also cleared up to 5,69,15,380 convertible warrants at US$5.66 each, worth US$322M, taking the total plan past US$451.1M.
Who's in? The equity issue involves 55 non-promoter investors and the warrant issue 93. Saint Capital FundDealroom has a profile for this one. Try Dealroom → is set to receive 50 lakh shares, while Nautilus Private Capital, Maestro Emerging Fund, Cullinan Opportunities and Tata Mutual FundDealroom has a profile for this one. Try Dealroom → are among other allottees. Opal Global Diversified Fund is the largest warrant recipient with 1.20 crore, and promoters Chanakya Reddy Baddam and Kanishka Reddy Baddam are each proposed 1,30,50,000 warrants.
Why now? The board approved the plan on July 6 and has called an Extraordinary General Meeting for August 4 to seek shareholder sign-off on the raise and on lifting authorised capital from US$6.11M to US$8.56M. Acuité Ratings & Research will monitor the use of proceeds.
What's the endgame? The infusion follows a run of capital-raising moves tied to earlier preferential allotments and warrant conversions. It aligns with a sharp operational scale-up: the company has a roughly US$15.3M export avionics order on its books, about 18% of a US$83.5M order book.
By the numbers: The equity consideration is payable in full at application; warrant allottees pay 25% upfront, with conversion into equity within 12 months.
What could go wrong? The plan hinges on shareholder and regulatory approvals still pending. The stock has been volatile — touching a 52-week low of US$2.2 in July 2025 — leaving the US$5.66 issue price exposed to sharp swings.
The signal: At roughly $347 million, this preferential allotment sits in the 99th percentile of comparable placements in India's semiconductor sector over the past 48 months, across a sample of 87 rounds. It marks a sustained, multi-stage funding push reshaping Apollo Micro's balance sheet as India's defence electronics sector draws stronger order and policy tailwinds.
Read more: Mint
Image credit: Apollo Micro Systems
