Apollo Micro Systems Converts Warrants, Raises ₹28.94 Crore

Apollo Micro Systems Ltd has successfully converted 33,85,362 equity shares from its warrants, bringing in proceeds of ₹28.94 crore. The conversion happened at an issue price of ₹114.00 per warrant.

Reader Takeaway: Funds raised strengthen the balance sheet, but remaining warrants pose potential dilution risk.

What just happened

The company's Securities Allotment Committee approved the allotment of 33,85,362 equity shares to 6 investors upon conversion of warrants. This conversion yielded ₹28.94 crore for the company, with investors paying ₹85.50 per warrant, which is 75% of the ₹114.00 issue price.

Why this matters

This inflow of funds increases Apollo Micro Systems' paid-up capital by ₹0.34 crore, from ₹35.73 crore to ₹36.07 crore. This successful capital raise via preferential issue of equity shares enhances the company's financial position and demonstrates progress in its capital-raising strategy.

The backstory

This conversion is part of a larger warrant issuance. Out of 3,80,67,058 warrants originally issued in June 2025, a total of 2,71,58,348 warrants have now been converted. This ongoing conversion reflects the company's active management of its capital structure.

What changes now

The newly allotted shares are pari passu with existing equity shares, meaning they carry the same rights and privileges. The company has successfully raised capital, boosting its financial resources.

Risks to watch

A critical point for remaining warrant holders is that any warrants not exercised within 13 months from the date of allotment will lapse, and the amounts paid towards them will be forfeited. There are approximately 1.09 crore warrants still unconverted, which could lead to future dilution if exercised.

Context metrics (time-bound)

• Proceeds Raised: ₹28.94 crore (₹2894.48 lakh)
• Equity Shares Allotted: 33,85,362
• Issue Price per Warrant: ₹114.00
• Payment upon Conversion: ₹85.50 per warrant
• Total Warrants Converted: 2,71,58,348 (out of 3,80,67,058 issued in June 2025)
• Number of Allottees in this tranche: 6
• Change in Paid-up Capital: +₹0.34 crore