Small-cap defence stock jumps 6% after receiving an order from DRDO. Do you own?

Small-cap defence stock Apollo Micro Systems jumped almost 6 per cent in intraday trade on the BSE on Wednesday, January 29, after the company announced it received an order from DRDO. Apollo Micro Systems share price opened at ₹120.10 against its previous close of ₹118.95 and jumped 5.8 per cent to the intraday high of ₹125.80. Around 11:40 AM, the stock traded 3.61 per cent up at ₹123.25.

In a post-market exchange filing on January 28, Apollo Micro Systems said it was declared as the lowest bidder for orders worth ₹7.37 crore from the Defence Research and Development Organisation (DRDO).

“We are pleased to inform that the company has been declared as the lowest bidder (L1) for orders worth ₹7.37 crore from Defence Research and Development Organisation (DRDO),” said the company.

Being the lowest bidder typically means the company has secured the order.

DRDO had awarded an order to the company in November also. In an exchange filing on November 22 last year, the company said it had received orders from DRDO and Adani worth ₹4.65 crore.

Moreover, on December 3, 2024, the company announced that it had bagged orders worth ₹21.42 crore from Bharat Electronics Limited (BEL) and a private company.

The company will announce its December quarter results on February 4.

Meanwhile, the company has declared the raising of funds through the issuance of preferential issues at ₹114 per share. T

Its board has approved raising the company's paid-up capital from the existing ₹36 crores to ₹45 crores. Out of these additional ₹9 crores paid-up capital, ₹3,34,18,806 paid-up capital is aimed at through the issuance of preferential shares.

Apollo Micro Systems share price trend

Apollo Micro Systems shares have remained subdued over the past year, with the stock price flat as of the previous session's close.

On a monthly scale, the small-cap stock has been rising since December, defying weak market sentiment.

For January so far, the stock has gained nearly 7 per cent after a 15 per cent gain last month.

Apollo Micro Systems share price hit a 52-week low of ₹88.10 on October 23 last year. It climbed to its 52-week high of ₹157 on January 21 this year.

As of the December 2024 shareholding pattern, promoters hold a 55.12 per cent stake in Apollo Micro Systems, while non-institutional investors own 43.28 per cent. The remaining shares are held by FIIs and insurance companies.

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