Apollo Micro Systems to Acquire Premier Explosives Stake for Rs 1,550 Crore

Shares of Apollo Micro Systems jumped 5% to Rs 418 on Friday after the company announced that it has signed a definitive share purchase agreement with Premier Explosives to acquire the promoters' 41.33% stake in the company through an all-cash transaction valued at around Rs 1,550 crore.

Premier Explosives operates in the high-energy materials segment and manufactures rocket motors for defence and aerospace applications, as well as countermeasures and munitions. The acquisition is expected to strengthen Apollo Micro Systems' presence in the defence and aerospace sectors by bringing together complementary capabilities in defence systems and energetic materials.

The transaction is expected to close in the quarter ending December 2026, subject to customary closing conditions, regulatory and shareholder approvals, and other necessary clearances. Upon completion of the acquisition, Premier Explosives will become part of Apollo Micro Systems while continuing to operate under its existing brand, supported by enhanced scale and growth opportunities.

As part of the transaction, Apollo Micro Systems will also make a mandatory open offer to eligible public shareholders of Premier Explosives to acquire up to 26% of the company's fully diluted voting equity share capital, in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations.

The acquisition remains subject to regulatory and statutory approvals, including clearance from the Competition Commission of India (CCI), along with the fulfilment of conditions specified in the share purchase agreement.

Commenting on the acquisition, Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems Ltd, said, "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."

A N Gupta, Founder and Chairman of Premier Explosives Ltd, 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. The decision to bring Premier Explosives into the Apollo Micro Systems family reflects our shared vision of building a stronger, more integrated indigenous defence and aerospace ecosystem."

Shonika Prasad, Trustee and Promoter, on behalf of the AKS Family Trust, said, “This transaction marks an important milestone for Premier Explosives and the AKS Family Trust. We are proud of the strong legacy built under A. N. Gupta's leadership, and we believe Apollo Micro Systems is well positioned to lead the company's next phase of growth.”