Apollo Micro Systems released a corrigendum clarifying its preferential issue of equity shares and warrants, totalling Rs 3,322 crore. The issuance includes 2.28 crore shares and 5.69 crore warrants at Rs 416.60 each. Promoters are investing Rs 1,080 crore in warrants, signaling confidence.
Apollo Micro Systems Ltd. Board Meeting Corrigendum
Total Value of Equity Shares: ₹951.14 crore
Total Value of Convertible Equity Warrants: ₹2371.09 crore
Reader Takeaway: Capital raise clarity positive; warrant conversion timeline key.
What just happened
Apollo Micro Systems has issued a corrigendum to its board meeting outcome from July 6, 2026. This update corrects previous announcements and provides definitive figures for its preferential issue. The company is issuing 2,28,30,902 equity shares and 5,69,15,380 convertible equity warrants.
The total aggregate amount for the equity shares is ₹951.14 crore, and for the convertible equity warrants is ₹2371.09 crore. Both are being issued at a price of ₹416.60 per unit.
Why this matters
This preferential issue represents a significant capital infusion for Apollo Micro Systems, totalling over ₹3,322 crore. This capital is expected to strengthen the company's financial position and fund its growth initiatives. The clarification provides certainty for investors regarding the size and terms of the capital raise.
The backstory
The company had previously announced its intention to raise capital via a preferential issue. This corrigendum finalizes the details, ensuring all parties have clear and accurate information before the allotment process is completed.
What changes now
Investors now have the exact quantum of shares and warrants being issued, along with the total funds to be raised. The convertible equity warrants can be exercised within 12 months from their allotment date, offering future equity dilution but also potential for growth funding.
Risks to watch
The primary risk lies in the conversion of warrants into equity. If the company does not deploy the raised capital effectively to drive growth, the future equity dilution from warrant conversion could pressure earnings per share.
Promoter Commitment
Promoters Chanakya Reddy Baddam and Kanishka Reddy Baddam have been allotted 1,30,50,000 warrants each, totalling 2.61 crore warrants. This significant commitment from promoters, amounting to approximately ₹1,080 crore, signals strong insider confidence in the company's future prospects.
Context metrics (time-bound)
The convertible equity warrants have a conversion period of 12 months from the date of allotment, exercisable in one or more tranches. The issue price for both equity shares and warrants is ₹416.60.
What to track next
Investors should monitor the deployment of the funds raised and the conversion of warrants into equity shares within the 12-month timeframe. The company's ability to achieve its growth objectives using this capital will be crucial.