Apollo Micro Systems (AMS) has signed a Memorandum of Understanding (MoU) with the Government of Telangana (GoT) for the expansion of a greenfield project in Telangana with an estimated investment of approximately Rs 1,500 crore. The stock has seen a sharp 4% decline in intra-day trade.
The defence and aerospace technology firm said in its regulatory filing said that the upcoming facility will house state-of-the-art units for producing and filling missile warheads, rocket motors, and small, medium and large calibre artillery systems. It will also manufacture ammunition and develop full ammunition systems for artillery, rockets and other armaments.
Project to serve domestic and global demand
The project will cater to both domestic and overseas demand requirements. “This expansion aligns seamlessly with the Government of India’s Aatmanirbhar Bharat vision, and AMS is poised to play an even more central role in enhancing National Security capabilities with fully indigenous, high-precision, high-reliability defence systems,” Apollo Micro Systems noted.
The company added that the new project will create strong synergies with IDL Explosives and help meet captive requirements of explosives for artillery shells, moored mines, MIGM and Grad rockets.
Telangana Govt to facilitate approvals
The Government of Telangana will help AMS secure all required permissions, registrations, approvals, clearances and applicable fiscal incentives from the relevant state departments, as per existing policies, rules and regulations outlined in the MoU.
Share price of Apollo Micro Systems
The share price of Apollo Micro System has increased 99.63% so far this year. In Tuesday’s trade, the stock declined nearly 4%.