Why Apollo Micro Systems Share is Rising Today?

Apollo Micro Systems Share Price: Shares of Apollo Micro Systems gained 5% on Friday after the defence company announced a ₹1,550 crore deal to acquire a 41.33% stake in Premier Explosives.

The stock jumped to ₹418.20 per share on NSE in early trade. However, it later gave up some of its gains due to profit booking and was trading 2.76% higher at ₹409.30 at the time of publishing.

Premier Explosives shares moved in the opposite direction. The stock was trading 3% lower at ₹691.90 on NSE.

As of 10 July, 12.44 PM

Apollo Micro Systems-Premier Explosives Deal 

Apollo Micro Systems has signed a definitive share purchase agreement to acquire 41.33% promoter stake in Premier Explosives for ₹1,550 crore. The acquisition will be an all-cash transaction.

Under the agreement, Apollo Micro Systems will acquire 2,22,21,735 equity shares with a face value of ₹2 each from the promoters of Premier Explosives.

Once the deal is completed, Apollo Micro Systems will gain control of Premier Explosives. The company will also make a mandatory open offer to acquire up to an additional 26% stake from eligible public shareholders.

The open offer price has been fixed at ₹698 per share and will be carried out in accordance with SEBI regulations.

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Deal Expected to Close by December 2026

The transaction is expected to be completed in the 3rd quarter of FY27, ending December 2026. The deal is subject to customary closing conditions and several approvals.

These include approval from the Competition Commission of India (CCI), completion of the mandatory open offer and other regulatory and shareholder approvals.

After the transaction is completed, Premier Explosives will become a subsidiary of Apollo Micro Systems. However, the company will continue operating under its existing brand.

Why Apollo Micro Systems Acquiring Premier Explosives?

The deal will bring together the capabilities of two companies operating in different parts of the defence manufacturing industry.

Apollo Micro Systems designs and manufactures electronic and electro-mechanical systems for the defence, space and homeland security sectors. Its customers include the Ministry of Defence, government-controlled public sector companies and private sector companies.

Premier Explosives operates in high-energy materials, rocket motors, countermeasures and munitions for the defence and aerospace sectors.

Apollo Micro Systems expects the combined business to improve operational efficiency, strengthen research and development capabilities and allow wider participation in defence and space programmes.

Managing Director Baddam Karunakar Reddy said the acquisition would strengthen India's defence manufacturing capabilities and expand domestic expertise in energetic materials and space programmes. He added that the combined businesses would have greater scale and technological capabilities to support the country's defence requirements.

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Apollo Micro Systems Share Price Performance

Apollo Micro Systems shares rose 5% to around ₹418 in Friday's trade before giving up some of the early gains.

The company's market capitalisation rose to around ₹14,590 crore. Apollo Micro Systems shares have gained 72% in the last 3 months and 66% over the past 6 months.

Over a longer period, the stock has delivered a return of 286% in 2 years and 789% in 3 years. In the last 5 years, Apollo Micro Systems shares have gained 3,524%.

Premier Explosives shares, meanwhile, fell after the deal announcement. The company's market capitalisation stood at around ₹3,725 crore.

Despite the decline, Premier Explosives shares have gained 606% over the past 3 years and 1,794% in the last 5 years.

Conclusion: What Does Deal Mean for Both Companies?

The ₹1,550 crore acquisition will expand Apollo Micro Systems' presence in the defence and aerospace manufacturing sector. Its existing capabilities in electronic and electro-mechanical defence systems will be combined with Premier Explosives' experience in energetic materials, rocket motors and munitions.