Apollo Micro Systems Ltd. shares saw a decline after the company announced that several key investors had withdrawn from its preferential offer of 2.45 crore convertible warrants.
As of 9:16 am the shares were trading 0.74% lower at ₹91.51 on NSE.
Key Details:
- Original Plan: In July 2024, the board had approved the issuance of 2.45 crore convertible equity warrants on a preferential basis to promoters and identified non-promoter entities.
- Investor Withdrawals: Major proposed allottees, including Eminence Global Fund PCC, Eubilia Capital Partners Fund I, North Star Opportunities Fund VCC, and AG Dynamic Funds Ltd., opted out of the offer.
- Reason for Withdrawal: The investors cited delays in opening the preferential offer from the time of their original consent, which led to shifts in their financial and strategic priorities.
Impact:
The withdrawal signals reduced investor confidence in the preferential offer and has led to negative sentiment in the stock market, affecting Apollo Micro’s share price. The company will now need to reassess its fundraising strategy to address this setback.
TOPICS:
Apollo Micro