Apollo Micro Systems shares opened 1.6% above its previous close but later shed all their gains and were trading 1% below on 11 October after the NSE (National Stock Exchange of India) and BSE provided trading approval of 6.6 lakh shares issued and allotted to non-promoters on a preferential basis.

The company was also declared the lowest bidder in multiple defence projects by the Defence Research and Development Organisation and another government sector company. These projects combined are worth Rs 28 crore.

The company has also informed the bourses about its plan to set up a defence equipment manufacturing facility in Hardware Park, Hyderabad, which is subject to the approval from the board of the company, following which the installation will be completed within nine months.

Karunakar Reddy Baddam, managing director of Apollo Micro Systems, in the company’s annual report, said, “In view of this, we allocated Rs 30 crore during the year towards capacity expansion as we plan to set up two new manufacturing units at our Hyderabad location over the next few years through organic means. Once operational, we expect our manufacturing capacity is expected to expand to over 3 lakh square feet.”

The company is in the business of designing, developing, assembling, and testing ruggedised custom-built electronic hardware and software solutions for mission-critical applications. Their solutions are based on advanced technologies for the defence, transportation, aerospace, space, and homeland security markets.

In its quarterly report for the April-June quarter, the company posted an 11% YoY increase in its net profit at Rs 1.8 crore and posted a 2.9% YoY increase in its revenue from operations at Rs 58.06 for the same period.

At 11:51 am, Apollo Micro Systems shares were trading at Rs 65.95 or 1.12% below its previous close on NSE.