MUMBAI,  4 January, 2018 (GPN) : Apollo Micro Systems, a company engaged in aerospace, defence and transportation sectors, is coming out with an IPO to raise Rs 156 crore by offer of equity shares of Rs 10 each for cash at a premium in the price band of Rs 270-275 per equity share.

The issue, being offered through a book-building route, come with a discount of Rs 12 to retail individual investors.The IPO would open for public subscription on January 10 and close on 12th with subscription for Anchor Investors opening on January 9.

The shares will be listed on NSE and BSE.

The proceeds from the IPO are proposed to be used in additional working capital requirements and general corporate purposes.
For the fiscal 2017, fiscal 2016 and fiscal 2015, the company closed with total income of Rs 211.79 crore, Rs 159.53 crore and Rs 108.76 crore respectively and profit after tax of Rs 18.57 crore, Rs 10 crore and Rs 7.44 crore respectively, the company informed in a statement.

The company’s has an order book of Rs 97.50 crore as of November 25, 2017.

Engaged in electronic, electro-mechanical, engineering designs, the company designs and develops high-performance, custom built ruggedized electronics and electro-mechanical systems for mission and time critical solutions.

It has participated in several Indigenous Missile programmes.

Aryaman Financial Services Limited is the Book Running Lead Manager.

Financial Performance :

Apollo Micro Systems Company Background

Apollo Micro Systems designs, develops and sells high-performance, mission and time critical solutions to defence, space and home land security for Ministry of Defence, government-controlled public sector undertakings and private sector corporates. It offers custom-built COTS (commercially off-the shelf) solutions based on specific requirements to defence and space customers. These systems are exclusively developed for a programme and hence such systems do not have any competition. The company participates in several Indigenous missile programmes, underwater electronic warfare, underwater missiles, surface-to-air missiles, nuclear missile programmes, surface-to-surface missile programmes, indigenous submarine programmes, UAV’s long and short endurance, ships, space programmes. The classification of verticals and solutions offered by the company are as follows:

Defence Avionic Systems : These offer solutions for avionic applications, such as PCM encoder and decoder, Gimbal payload electronics, spread spectrum modem which are integrated in aircrafts or UAVs.

Defence Aerospace Systems : These offer on-board weapon system electronics solutions and ground checkout and launcher controller systems for missile system requirements.

Defence Naval Systems : These systems offer on-board weapon system electronics and ground support systems for underwater missiles (torpedoes), anti-torpedo decoys and jammers, submarines and ships.

Satellite Space Systems : These offer ground checkout systems and earth station acquisition systems for space applications.

Homeland Security & Telematics: These offers telematic and integrated surveillance systems like GPS-based vehicle tracking system, integrated surveillance systems consisting of CCTV and boom barriers and ore mining companies.

Transportation : It provides solutions related to telematics, data handling systems and automotive electronics and for Indian railways.

The company has spent Rs 12.86 cr, Rs 8.65 cr and Rs 1.46 cr towards R&D activities in FY17, FY16 and FY15, respectively. Its emphasis on R&D activities has given it a competitive edge over other companies in the market.

Industry Outlook :

India has one of the fastest growing global defence markets and the country spends USD 40 billion annually (1.62% of GDP in FY17) on the sector. India is also one of the largest importers of conventional defence equipments and spends about 31.5% of its total defence budget on capital acquisitions. However, about 60% of India’s defence requirements are met through imports. In order to build a domestic industrial base, the Government of India has set for itself a challenging target of achieving 70% indigenisation. The government’s capital expenditure on defence has increased from USD 3 billion in 2000 to USD 55.9 billion in 2016. The Finance Minister in the FY18 Union Budget allocated Rs 2.74 trillion for the defence sector.

The Government of India’s initiative, ‘Make in India’ aims to boost the nation’s domestic manufacturing sector as well as to create market by targeting exports. The defence electronics manufacturing sector is expected to create Rs 4 trillion worth market opportunity during FY16–FY26E. The demand for electronics hardware in the country is projected to touch USD 400 billion by 2020, which is expected to create a unique opportunity for companies in the ESDM (Electronic System Design & Manufacturing) sector to look at India as their next destination.ENDS