Multibagger Defence Stock: AMS Announces New Fundraising Plans & Strategic Acquisitions; Scrip Falls 5%

Apollo Micro Systems Ltd. (AMS) shares were under heavy selling pressure on Tuesday, falling 4.91% to an intraday low of Rs 134.55 after opening higher at Rs 141.50 a share. At 1:58 PM IST on May 20, the stock was down 3.17% at Rs 135.82. But with gains of 1,546.30% over the previous five years and 1.025% over the last three, AMS is a multibagger defence stock on the D-Street.

The decline also came after the company stated that it had already obtained an in-principle approval from both the National Stock Exchange of India Limited and BSE Limited regarding a major preferential issue. Under this framework, Apollo Micro Systems intends to subsume more than 3.11 crore equity shares plus 3.80 crore convertible equity warrants. Both shares and warrants will be issued at Re 1 face value to non-promoters and promoters at a price no less than Rs 114 per share.

In other news, the firm's subsidiary Apollo Defence Industries Pvt Ltd has recently purchased a 100 per cent controlling equity stake in IDL Explosives Ltd from the Hinduja Group for an all-cash deal of Rs 107 crore. IDL Explosives, part of GOCL Corporation Ltd, is India's pioneering explosives manufacturer, established in 1961. This acquisition synergizes the advanced electronics capabilities of Apollo Micro Systems with IDL's heritage in mining and infrastructure, creating a vertically consolidated defence entity able to provide comprehensive solutions throughout the arsenal and armaments value chain.

Apollo Micro Systems still continues to demonstrate strong financial results irrespective of the movements on the market on Tuesday. During Q3 of FY25, the company achieved net sales of Rs 148.39 crore, translating to 62.5 per cent growth YoY, and 83.1 per cent growth in profit after tax, amounting to Rs 18.24 crore. For the nine months of FY25, net sales attained Rs 400.30 crore, exhibiting a 69.5 per cent increase from the prior year, while profit after tax grew by 133.2 per cent to reach Rs 42.40 crore. For FY24, the company's undersold targets were scrubbed clear with net sales hitting Rs 371.63 crore, which was 24.91 per cent up from FY23. Subsequently, PAT rose 66.01 per cent, hitting Rs 31.11 crore.

The company has caught the attention of many investors, and that interest seems to be growing. In March 2025, foreign institutional investors raised their holdings from 0.74% to 0.93% by buying more than six lakh shares. Apollo Micro Systems which is part of the Small BSE CAP Index, has its market cap currently at over Rs 4000 Crores, and its stock alone has reached exceptional milestones, like a needle in a haystack.

Starting in 1985, Apollo Micro Systems now ranks among the major companies in the sectors of aerospace, defence along with space, in India. The micro systems company is popular for the focus it gives on R&D, like developing strategic projects, including torpedo-homing systems and underwater mines. Although ever since the recent events, there has been some short-term overreaction - volatility to be specific, the maturity of the company's collapse due to abuse of great long-term value lies in being stress-tested, the company's growth remains solid on fundamentals backed by intelligent, foresightful spending and growing confidence from the institutional investors.