Apollo Micro Systems shares gained 5% on Friday following the latest acquisition announcement made after market hours. As per Business Standard, the stock had climbed as much as 5% to ₹418.20 per share in early trade before profit booking reduced gains. The market reaction reflects strong investor confidence in the defence sector consolidation, with the stock having gained 48.71% this year so far, significantly outperforming the benchmark Nifty50 which declined 7.52%. In the last one year, the stock has zoomed 120%, demonstrating exceptional performance. However, Premier Explosives shares traded 2.94% lower at ₹693 on Friday, though the stock had touched an intraday high of ₹724.30 per share. The transaction is expected to be completed in the third quarter ending December 2026, subject to customary closing conditions, regulatory and shareholder approvals.
Apollo Micro Systems has officially signed a definitive Share Purchase Agreement (SPA) to acquire 41.33% stake in Premier Explosives for ₹1,550 crore through purchase of 2.22 crore equity shares with face value of ₹2 each. According to Business Standard, the acquisition involves the purchase of 2,22,21,735 equity shares of Premier Explosives with a face value of ₹2 each, with Apollo Micro Systems gaining control of the company following the transaction. The deal values Premier Explosives at ₹3,753 crore, compared to its current market capitalisation of ₹3,728.07 crore. As part of the transaction, Apollo Micro Systems will also make a mandatory open offer to acquire up to an additional 26% stake in Premier Explosives from public shareholders at ₹698 per share from eligible public shareholders under the SEBI Substantial Acquisition of Shares and Takeovers Regulations. The acquisition is expected to close in Q3 of FY27, provided all requirements are met, with Premier Explosives becoming a subsidiary of Apollo Micro Systems while continuing to operate under its existing brand name.
Apollo Micro Systems specializes in advanced electronic, electro-mechanical, and engineering systems, while Premier Explosives, founded in 1980, operates in the high-energy materials segment and manufactures rocket motors for defence and aerospace applications, countermeasures and munitions. As reported by Business Standard, the proposed acquisition would bring together two defence-focused companies at a time when India's defence spending and exports are rising sharply. The deal would also come at a time when the government is pushing domestic manufacturing in defence and seeking to reduce import dependence. Premier Explosives is engaged in manufacturing solid propellants for missile programmes and supplying countermeasure systems to the Indian defence, aerospace and mining sectors. According to Business Standard, the transaction combines complementary capabilities in defence systems and energetic materials, enables operational efficiencies and enhanced R&D, brings about broader participation in defence and space-related programmes and supports next-generation defence and space programs. Upon completion, Premier Explosives will continue to operate under its existing brand while leveraging the group's expanded scale and capabilities.
Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, stated that "This acquisition strengthens our nation's defence manufacturing capability and deepens our sovereign expertise in energetic materials and space programmes. Together, we are better positioned to safeguard national security interests and support our armed forces with greater scale, resilience, and technological self-reliance." As reported by Business Standard, the acquisition will combine the companies' capabilities in defence systems and energetic materials, enabling operational efficiencies, enhanced research and development, and broader participation in defence and space-related programmes. The transaction aligns with Apollo Micro Systems' objective of building an integrated, end-to-end indigenous defence platforms ecosystem under the Aatmanirbhar Bharat and Make in India initiatives. At the end of the March quarter, Premier Explosives promoters held 41.33% stake in the company, while public shareholders held 58.67% stake. Dr A N Gupta, Founder and Chairman at Premier Explosives, said "Premier Explosives has built a distinguished legacy over the decades, and I am confident that, together, we can unlock new opportunities for innovation, technological excellence, and sustainable growth."
As part of the transaction, Apollo Micro Systems will make a mandatory open offer to eligible public shareholders of Premier Explosives for acquiring up to 26% of the fully diluted voting equity share capital under the SEBI Substantial Acquisition of Shares and Takeovers Regulations. The open offer price has been fixed at ₹698 per equity share as per the SAST Regulations. According to Business Standard, Apollo Micro Systems can own up to 67.33% of Premier Explosives through the combined acquisition, with the company launching a mandatory open offer to acquire an additional 26% stake at ₹698 per share. The acquisition will be funded through cash consideration and is aligned with Apollo Micro Systems' objective of building an integrated, end-to-end indigenous defence platforms ecosystem under the Aatmanirbhar Bharat and Make in India initiatives.
