Apollo Micro Systems EGM: ₹3,322 Cr Raise in 2026

What the company is seeking shareholder approval for

Apollo Micro Systems Limited has scheduled an Extraordinary General Meeting (EGM) on August 4, 2026, to seek shareholder approval for a large preferential issue. The company plans to raise ₹3,322.23 crore through a mix of equity shares and convertible equity warrants. As disclosed, the proposed issue involves up to 22,830,902 equity shares and 56,915,380 warrants, each priced at ₹416.60 per unit. The fundraising is positioned around three stated uses: strategic acquisitions, debt repayment, and working capital needs. The proposal also includes an increase in authorised share capital, which typically precedes a sizeable equity issuance. The EGM will be a key gating event because preferential allotments need member consent and regulatory compliance.

Preferential issue structure: shares plus convertible warrants

The company’s board has approved issuing up to 2.283 crore equity shares and 5.6915 crore convertible equity warrants on a preferential basis, subject to shareholder approval. Both instruments carry the same issue price of ₹416.60 per unit. The company also stated that the issue price includes a premium of ₹415.60 per share over the ₹1 face value. For the equity shares component, the company disclosed an aggregate amount of about ₹951.13 crore. For the warrants component, it disclosed an aggregate amount of about ₹2,371.09 crore. Together, these add up to the total fundraising plan of ₹3,322.23 crore.

Where the money is expected to be used

Apollo Micro Systems has disclosed intended deployment of the net proceeds across multiple heads. The stated plan includes exploring potential acquisition opportunities, repaying existing debts of the company and its subsidiaries, and meeting working capital requirements for fiscal 2027 and fiscal 2028. In the detailed utilisation split, the company outlined allocations of ₹1,500.00 crore for potential acquisitions, ₹500.00 crore for debt repayment, and ₹800.00 crore for working capital. It also disclosed ₹522.23 crore for general corporate purposes, noting it is up to 25% of total proceeds. These are stated intentions and are contingent on the capital raise being approved and completed.

Investors, allotment mix, and conversion mechanics

The equity shares are proposed to be allotted to 55 identified non-promoter investors. The warrants are proposed to be issued to 93 investors, including members of the promoter group as well as non-promoters. Each warrant is convertible into one fully paid-up equity share of ₹1 face value. The conversion can be exercised in one or more tranches within 12 months from the date of allotment, as disclosed. The company also stated that an amount equivalent to 25% of the total warrant issue size will be called upfront from the proposed warrant allottees. For the equity shares, the company disclosed that 100% of the preferential allotment price is payable at the time of application.

Authorised share capital increase proposed alongside the issue

Alongside the preferential issue, Apollo Micro Systems plans to increase its authorised share capital from ₹45 crore to ₹63 crore. The company disclosed this will be done by creating 18 million additional equity shares. Such a step is commonly required to ensure the company has sufficient authorised capital headroom to allot new shares upon completion of a preferential issue and future conversions of warrants.

Recent listing: 1.42 crore shares admitted after warrant conversion

Separately from the upcoming EGM proposal, Apollo Micro Systems has already listed 1.429 crore equity shares on the NSE and BSE on July 23, 2026. These shares were admitted to dealings with effect from Thursday, July 23, 2026, following conversion of warrants that had been allotted to non-promoters. The shares were issued at ₹114 each, with a face value of ₹1 and a premium of ₹113. The company disclosed that the securities rank pari-passu with existing equity shares. The preferential conversion and listing happened across three tranches, with allotment dates on June 8, June 17, and June 23, 2026.

Lock-in and tranche details for the newly listed shares

The total issue size for the listed shares was disclosed as 1,42,94,072 equity shares. These shares were issued to non-promoters and are subject to a lock-in. The company disclosed the lock-in period for all shares issued under this preferential basis ends on January 23, 2027. This detail matters for market participants because it restricts secondary-market selling by the allottees until the lock-in expiry, as per applicable rules.

Key dates and the pricing reference

The company disclosed July 3, 2026 as the relevant date for price determination for the preferential allotment. It has also fixed July 28 as the cut-off date for determining shareholders eligible to vote electronically. The EGM itself is scheduled for August 4, 2026, and will be held through video conferencing, as disclosed. These dates form the near-term calendar for shareholders tracking approvals.

Market reaction noted after board approval

Shares of Apollo Micro Systems Ltd. came under pressure on July 7, 2026, declining nearly 6% after the board approved the ₹3,322 crore fundraising plan. The move reflects a typical market sensitivity around potential dilution from large preferential issues and warrants. The company later issued a corrigendum to its board meeting outcome dated July 6, 2026, clarifying definitive figures for the preferential issue. The disclosures also mention that promoters are investing ₹1,080 crore in warrants.

Snapshot table: issue components and stated use of funds

Timeline table: recent equity listing and upcoming approvals

Why this fundraising matters for shareholders

The fundraising proposal combines an immediate equity issuance and a warrant issuance that can convert into equity within 12 months, which is relevant for tracking potential dilution. The disclosed structure also indicates different payment mechanics: full payment upfront for equity shares and 25% upfront for warrants. The utilisation disclosure points to a mix of growth-led spending (acquisitions) and balance sheet actions (debt repayment), alongside working capital for fiscal 2027 and fiscal 2028. The authorised share capital increase from ₹45 crore to ₹63 crore signals preparation for the enlarged equity base. The EGM vote on August 4 will determine whether the preferential issue proceeds under the disclosed terms.

What to watch next

The near-term focus will be on the EGM outcome and subsequent regulatory and procedural steps required for preferential allotment and warrant issuance. Shareholders will also track further exchange filings on allotment schedules, warrant conversion timelines, and any updates on the stated acquisition exploration. The company has already completed a prior warrant conversion and listing in July 2026, and the lock-in for those shares runs until January 23, 2027. Any future disclosures on tranche-wise allotments under the new plan, if approved, will be central for investors monitoring equity base changes.