Apollo Micro Systems Issues Corrigendum to EGM Notice, Clarifies Preferential Issue Details

Hyderabad, January 28, 2025 – Apollo Micro Systems Limited (NSE: APOLLO, BSE: 540879) has issued a corrigendum to its Extraordinary General Meeting (EGM) notice, originally dated January 9, 2025, following observations from NSE and BSE. The EGM, scheduled for February 4, 2025, will discuss key corporate matters, including a preferential issue of equity shares and convertible warrants.

Key Amendments in the Corrigendum​

1. Clarification on Utilization of Issue Proceeds
   
   • The original statement allowing modifications to fund utilization at the discretion of the Board has been removed.
   • A revised explanation states that the fund allocation may deviate within a ±10% range, subject to market conditions and business performance.
2. Investment in Subsidiary – Apollo Defence Industries
   
   • Apollo Micro Systems has identified Apollo Defence Industries Private Limited as the subsidiary for investment under the preferential issue.
   • The capital infusion will support business expansion, new projects, and financial strengthening.
3. Enhanced Focus on R&D for Aerospace & Defense
   
   • The company will allocate proceeds toward developing new aerospace, defense, and railway-related products with minimal lead time for commercialization.
   • Until fully deployed, funds may be temporarily invested in government securities, debt mutual funds, and fixed deposits.
4. Stock Exchange Compliance & Trading Volume Assessment
   
   • The corrigendum confirms that Apollo Micro Systems’ shares were more frequently traded on NSE in the 90-day period before the relevant date.
5. Ultimate Beneficial Ownership (UBO) Disclosures
   
   • The company has provided updated UBO details of key proposed allottees in the preferential issue, including names such as PGIM India Equity Growth Fund, Smart Horizon Opportunity Fund, and Zeta Global Funds.
6. Promoter & Management Subscription Updates
   
   • Promoters and key managerial personnel (KMPs) will not subscribe to the preferential issue, except:
     • Baddam Kanishka Reddy & Baddam Chanakya Reddy (Promoter Group).
     • Addepalli Krishna Sai Kumar (Whole-Time Director, Operations).
     • Sudarshan Chiluveru (Chief Financial Officer).

Implications for Investors​

This clarification aligns Apollo Micro Systems’ preferential issue with regulatory transparency, ensuring accurate fund deployment and investment disclosure. Investors will now focus on:

• Strategic benefits of the Apollo Defence Industries investment.
• Execution of aerospace and defense R&D projects.
• Market reaction post-EGM resolution.