Shares of this smallcap defence firm hit upper circuit on DRDO approvals

Shares gain in trade.

Shares of Apollo Micro Systems on Monday hit the 5 percent upper circuit after the company said it has received approvals from the Defence Research and Development Organisation (DRDO) for transfer of technology related to directed energy weapon systems.

Shares of the company advanced to Rs 249.80 per share on the NSE, up 4.98 percent.

In a regulatory filing, the company said it has received two approvals for transfer of technology (ToT) for laser-based directed energy weapon (DEW) systems and electro-optical (EO) tracking systems for DEW, subject to fulfilment of prescribed conditions.

The first approval relates to the transfer of technology for a multi-channel 10 kW laser directed energy weapon system from DRDO’s Centre for High Energy Systems and Sciences (CHESS), Hyderabad. The transfer is subject to execution of a licensed agreement for transfer of technology and compliance with regulatory requirements.

The second approval pertains to the transfer of technology for an EO tracking system with EO sensors for DEW from DRDO’s Instruments Research and Development Establishment (IRDE), Dehradun.

The company said the approvals will strengthen its capabilities in DEW sub-systems, including laser-based engagement systems and electro-optical tracking solutions, and are aligned with the government’s defence indigenisation efforts.

Directed energy weapon systems use high-powered lasers to damage or destroy targets by directed energy rather than kinetic force. These systems are used for precision engagement of threats such as unmanned aerial vehicles, missiles and small vehicles, the company said in an exchange filing.