Defence stock Apollo Micro Systems locked in upper circuit post order win from Indian Army

The order win was disclosed by AMS to the exchanges via a regulatory filing late on Friday, July 12. In the trading session today, the stock opened at ₹109.76 apiece on the NSE, marking a sharp surge of 4.99% as against the last closing price.

Following the opening bell, the shares hit the upper circuit, and remained locked in the same till at least the mid-day trading.

Make II project awarded

"...Apollo Micro Systems Limited is shortlisted keeping in view the capability and was awarded Make II project by the Indian Army," the company stated in its exchange filing.

This project is for the procurement of a Vehicle Mounted Counter Swarm Drone System (VMCSDS) (Version I) under the Make II category of Defence Acquisition Procedure (DAP)-2020, it added.

As a Make II project, "there will be no cost obligation involved," AMS said. The time period within which the contract is to be executed is "85 weeks for single stage composite trials and staff evaluation", it added.

According to the government's Department of Defence Production, Make-II or industry-funded projects are those which involve prototype development of equipment, system, platform or their upgrades primarily for import substitution/innovative solutions, "for which no Government funding will be provided for prototype development purposes".

AMS said the project awarded by the Indian Army will mark the "first Make II project for the company".

The Hyderabad-headquartered company, which specialises in design, development, assembly and testing of aerospace and defence systems, has soared at the stock market over the past year. In the last 12 months, the stock has grown by around 87%. Year-to-date, however, the shares are down by about 8%.