News ArticleApollo Micro Systems Wins Shareholder Approval for Preferential Issue of Equity Shares and Convertible Warrants in August 2026
Shareholders approve capital increase and allotment of up to 2.18 crore shares and warrants to multiple investors including promoter group and non-promoter entities
Apollo Micro Systems Limited held an Extraordinary General Meeting on August 4, 2026, where shareholders approved an increase in authorized share capital and a preferential issue of equity shares and convertible equity warrants to identified non-promoter and promoter group investors. The issue includes up to 2,18,22,149 equity shares and convertible warrants to raise capital as per SEBI regulations.
Apollo Micro Systems Limited
Preferential Issue
Apollo Micro Systems Limited announced on August 4, 2026, the shareholder approval at its extraordinary general meeting for increasing its authorized share capital and issuing equity shares and convertible equity warrants on a preferential basis to selected investors.
The resolutions approved at the EGM include increasing the authorized share capital, issuing equity shares preferentially to non-promoter persons/entities, and issuing convertible equity warrants preferentially to the promoter group and certain identified non-promoter persons/entities.
Additionally, the company received clarifications and observations from the National Stock Exchange (NSE) regarding the preferential issue pricing and subscription intent, all addressed and disclosed.
The preferential issue involves a separate bank account for application monies and follows valuation norms as per SEBI ICDR regulations, with registered valuer confirmation for pricing fairness.
Promoter group members Mr. Baddam Kanishka Reddy, Mr. Baddam Chanakya Reddy, and Company Secretary Mr. G. Seshadri Vasan intend to subscribe to convertible warrants; no other promoters or directors plan to subscribe.
The detailed annexure lists proposed allottee shareholdings, pre- and post-issue, including institutional and individual investors with specific share and warrant allotments.
Highlights
- Extraordinary General Meeting held on August 4, 2026, via video conferencing.
- Approval for increasing authorized share capital and preferential issue of shares and warrants.
- Preferential issue includes non-promoter and promoter group allottees.
- Fair valuation by registered valuer Mr. Hemang Shah under SEBI norms.
- Convertible equity warrants subscribed by select promoter group members and company secretary.
- Separate bank account mandated for preferential issue application money to ensure proper utilization.
Key Data Snapshot
What happened
- Apollo Micro Systems Limited held an Extraordinary General Meeting (EGM) on August 4, 2026, via video conferencing.
- Shareholders approved increasing the company's authorized share capital.
- Shareholders sanctioned preferential issuance of equity shares to select non-promoter investors.
- Preferential issuance of convertible equity warrants to promoter group members and certain identified non-promoter investors was also approved.
Key details
- Separate bank account to be maintained for monies received from preferential issue applications, ensuring funds are used only for allotment adjustment.
- Pricing and justification of preferential issue price was confirmed by a registered valuer in compliance with SEBI ICDR regulations.
- Promoter group members and the company secretary indicated intent to subscribe to convertible equity warrants.
- The detailed list of proposed allottees includes institutional funds and individuals with pre- and post-issue shareholding percentages.
- No change in control is indicated as per disclosures provided.
Regulatory and governance context
- The resolutions comply with Section 180 and Section 186 of the Companies Act, 2013 concerning borrowing limits, creation of securities, and giving loans and guarantees.
- Disclosures addressed observations and clarifications from the National Stock Exchange regarding the preferential issue process and pricing.
- Voting conducted remotely under Companies Act, 2013, with results and scrutinizer report to be separately submitted as per SEBI Listing Regulations.
Highlights
- Extraordinary General Meeting held on August 4, 2026, via video conferencing.
- Approval for increasing authorized share capital and preferential issue of shares and warrants.
- Preferential issue includes non-promoter and promoter group allottees.
- Fair valuation by registered valuer Mr. Hemang Shah under SEBI norms.
- Convertible equity warrants subscribed by select promoter group members and company secretary.
- Separate bank account mandated for preferential issue application money to ensure proper utilization.
Disclosures
- SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
- Companies Act, 2013
- SEBI ICDR Regulations
Promoter group members and company secretary intend to subscribe to some convertible warrants; no other promoter, director, or key managerial personnel intend to subscribe or contribute separately.
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