Apollo Micro Systems Ltd. has received a government licence to manufacture and proof test defence weapon systems, the company announced on Friday. The licence authorises the company to manufacture systems across two categories of arms of calibre above 12.7mm at the facilities in Hyderabad, according to a statement.
The list of arms include missiles, anti-tank guided missiles, torpedoes, underwater mines, safety arming mechanism, chaffs, flares and decoys in 'Category 1 — Guided Weapons, Underwater Systems & Countermeasures' and aerial bombs, rockets, and loitering munition in 'Category 2 — Aerial Munitions & Loitering Systems'. The annual production capacity will be 1,000 units per category.
The licence has a lifetime validity and will allow Apollo Micro Systems to move from being a provider of embedded systems and subsystems to an end-to-end platform manufacturer of complete weapon systems including missiles, torpedoes, precision bombs, and next-generation loitering munitions.
"This licence is an important step in expanding the company's presence in the defence manufacturing sector," said Managing Director B Karunakar Reddy, adding that the weapon systems will be made for the Indian Armed Forces and for export. "We will progress methodically, ensuring that our manufacturing infrastructure, quality systems and regulatory compliances are in place before we scale production.”
Subsidiary IDL Explosives Ltd. has established expertise in the manufacture of industrial and defence-grade explosives, propellants, pyrotechnics, detonators, and initiating systems. This capability is directly relevant to the weapon systems that Apollo Micro Systems is now licensed to manufacture, the statement said.
The Hyderabad-based company is a Tier-I supplier to the Defence Research and Development Organisation, Hindustan Aeronautics Ltd., Bharat Electronics Ltd. and the Ministry of Defence.
Apollo Micro Systems Share Price Movement
Shares surged as much as 12.7% to Rs 273 on the NSE, compared to a 0.4% rise in the benchmark Nifty 50. The total traded volume stood at 3.5 times the 30-day average.
The stock is up 124% in the last 12 months.
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