Apollo Micro Systems Share Price Falls Over 4% Today, Company Says Yes to Preferential Share Allotment

Apollo Micro Systems has announced the approval of a fresh allotment of equity shares on a preferential basis following the conversion of warrants. Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have granted listing approvals for the newly issued shares.

A total of 11,696 equity shares, each with a face value of Re 1, have been listed and made available for trading from March 19, 2026. These shares were issued at a price of ₹114 per share, including a premium, and are traded under the company’s existing symbol.

Importantly, the newly issued shares rank pari passu with existing equity shares, ensuring equal rights in terms of dividends, voting and other shareholder benefits.

Lock-In Period And Market Reaction

Despite the listing, the allotted shares will remain under a lock-in period until September 19, 2026, in line with regulatory requirements for preferential issues. During this period, investors are restricted from selling or transferring these shares in the open market.

Apollo Micro Systems’ share price came under pressure on the day of the development. The stock opened at ₹200.60 and slipped over 4%, hitting an intraday low of ₹196.80 before recovering slightly. Market participants appeared cautious, with technical indicators suggesting a short-term downtrend, as the stock continues to form lower highs and lower lows.

According to market experts, immediate support for the stock is placed around ₹190, followed by ₹164.

Strong Financial Performance And Order Visibility

Operationally, Apollo Micro Systems reported a solid performance in the third quarter of FY26. Revenue from operations surged 70% year-on-year, reflecting strong execution and demand.

EBITDA (excluding other income) grew by 33% YoY, while Profit After Tax (PAT) increased by 25% during the quarter. The company has also demonstrated consistent long-term growth, with revenue CAGR of 29% and PAT and EBITDA CAGR of 35% between FY21 and FY25.

Adding to its growth visibility, the company reported a robust order backlog of ₹1,305 crore as of FY25, which is more than 2.3 times its annual revenue, indicating a strong pipeline for future earnings.

Read more: Fractal Analytics Hints at Anthropic Partnership as it Expands Multi-Model AI Strategy.

Conclusion

While the preferential allotment strengthens Apollo Micro Systems’ capital base, the immediate market reaction remains cautious amid technical weakness in the stock. However, the company’s strong earnings growth and healthy order book provide a positive long-term outlook. Investors are likely to track execution performance and broader market sentiment before taking fresh positions in the stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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