Apollo Micro Systems Rs 156-crore IPO in progress: 10 things to know before you subscribe

Apollo Micro Systems, the Hyderabad-based firm, which offers integrated solutions to the aerospace, defence, home land security and transportation sectors has launched its Rs 156-crore initial public offer (IPO) today. We look at 10 things to know before you participate in the first IPO of 2018.

• The shares are available in a price band of Rs 270-Rs 275 per share with discount of Rs 12 per share for retail investors and eligible employees. 35 percent of the shares are allotted for retail investors. The IPO does not have offer for sale (OFS) component which means all shares offered in the issue will be fresh shares.
• Proceeds of the three-day IPO will be used to meet additional working capital (Rs 118.92 crore) and other general corporate purposes. The equity shares are proposed to be listed on BSE and NSE. Aryaman Financial Services is the sole book running lead manager to the issue.
• Meanwhile, the firm has raised nearly Rs 47 crore from anchor investors. It has allotted 16,96,050 shares to four anchor investors at a price of Rs 275 per scrip, garnering Rs 46.64 crore, the company said in a statement. Sundaram Mutual Fund A/C Sundaram Infrastructure Advantage Fund and Jupiter South Asia Investment Company Ltd - South Asia Access Fund are among the anchor investors.
• The company logged Rs 18.6 crore net profit in FY 17 compared to Rs 10 crore net profit in FY 16. It clocked Rs 7.4-crore net profit in FY 15.
• Total revenue for FY 17 stood at Rs 211.8 crore compared to Rs Rs 159.5 crore in FY 16. Revenue for FY 15 stood at Rs 108.8 crore.  Its total revenue grew at a CAGR of 54.23% over the last five fiscal years.
• The company recorded total income of Rs 211.79 crore, Rs 159.53 crore and Rs 108.76 crore, respectively for fiscal 2017, fiscal 2016 and fiscal 2015. As of November 25, 2017, the company's order book stood at Rs 97.50 crore.
• The company was incorporated in Hyderabad as a private limited company on March 3, 1997. Its clients include governmental entities such as ministries of the Central Government and national as well as state level public sector undertakings.
• Its net worth as on March 31, 2017 and September 30, 2017 was Rs 6,337.10 lakh and Rs 7,624.86 lakh, respectively.
• The firm spent Rs 678.59 lakh, Rs 1,286.46 lakh, Rs 865.01 lakh and Rs 146.81 lakh towards our R&D activities during the six months period ended September 30, 2017 and financial years 2017, 2016 and 2015, respectively.
• Apollo Microsystems is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company. Its 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 sectors.