Apollo Micro Systems, a maker of defence electronics and aerospace systems, has pulled in ₹18.32 crore by converting outstanding warrants into equity shares, reinforcing its capital base at a moment when Indian investors are keeping a sharp eye on defence and aerospace names. The company's Securities Allotment Committee cleared the allotment of 21.43 lakh equity shares on June 23, 2026, after the warrant exercise money came in from investors. The stock has been a strong performer, handing investors roughly 97% returns over three months.
The move matters for shareholders on two counts. Warrant conversion channels fresh capital into the company and lifts the number of equity shares in circulation. It also signals that the warrant holders chose to pay the balance and become equity shareholders instead of letting the warrants expire. For a firm rooted in defence electronics and aerospace systems, such capital moves are watched closely for both funding and investor sentiment.
21.43 lakh shares hit the books
The company issued 21,43,095 equity shares of ₹1 face value each, matching an equal number of warrants. Those warrants had been issued earlier on a preferential basis. The conversion went through once the company received an aggregate ₹18.32 crore as the warrant exercise amount from the allottees.
Each warrant carried an issue price of ₹114. Of that, ₹85.50 per warrant was paid at the time of conversion as the balance exercise amount. Once allotted, the new equity shares rank pari passu with the existing equity shares of Apollo Micro Systems, meaning they carry exactly the same rights as the company's current shares.
With the allotment done, Apollo Micro Systems' issued and paid-up share capital climbed from 36.94 crore equity shares to 37.15 crore equity shares. The percentage jump is small, but it still widens the company's equity base and wraps up another tranche of capital tied to the earlier preferential warrants.
Why warrant conversion counts for shareholders
Warrants are instruments that grant the holder the right to subscribe to equity shares at a pre-fixed price, usually within a set window. In India, companies frequently turn to preferential warrants to raise money from promoters, institutional investors or selected non-promoter investors. The structure lets a company collect part of the money upfront and the rest when the warrants are converted.
For investors, the conversion stage is the telling one, because it forces the warrant holder to commit extra funds. If the holder sees little upside in converting, the warrant can simply stay unexercised. When investors do convert, it is usually taken as a sign that they are willing to keep equity exposure in the company.
That said, conversion also swells the outstanding share count. If profits fail to grow in step with the larger equity base, earnings per share can take a dilutive hit. This is why investors tend to weigh both sides of the deal: the capital the company gains and the additional shares entering the market.
In Apollo Micro Systems' case, the conversion brings in new money while adding 21.43 lakh shares to the paid-up capital. The freshly issued shares become part of the company's enlarged equity structure and will be eligible for the same corporate benefits as existing shares, subject to applicable rules and record dates.
