Apollo Micro Systems Acquires 41.33% Stake in Premier Explosives for Defence and Space Programmes

Apollo Micro Systems Acquires 41.33% Stake in Premier Explosives for Defence and Space Programmes​

Apollo Micro Systems Limited, a pioneer in defence technology with 41 years of experience, has entered into a definitive share purchase agreement with Premier Explosives Ltd (PEL). The strategic acquisition is intended to combine complementary capabilities in defence systems and energetic materials, enhancing both companies' participation in national defence and space programmes.

The transaction involves Apollo Micro Systems acquiring promoter shares representing 41.33% of Premier Explosives Limited for approximately INR 1550 Crores in an all cash deal. Premier Explosives Ltd is a leading manufacturer focused on High Energy Materials, rocket motors for defence and aerospace applications, countermeasures, and munitions.

Following the completion of the transaction, Premier Explosives Ltd will operate under the umbrella of Apollo Micro Systems Limited while continuing to use its existing brand name. The acquisition process is anticipated to close in the Third Quarter or December 2026, subject to customary closing conditions and approvals.

Transaction Details​

The key financial and operational details of the acquisition are summarized below:

Strategic Rationale and Vision​

The acquisition aims to leverage the combined strength in defence systems and energetic materials, facilitating greater operational efficiencies and expanding Research & Development efforts. Both companies are uniquely positioned to contribute significantly to national security interests.

Mr Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems Ltd, stated that the acquisition "strengthens our nation's defence manufacturing capability and deepens our sovereign expertise in energetic materials and space programmes." He added that the move is intended to support armed forces with increased scale, resilience, and technological self-reliance.

Dr A N Gupta, Founder & Chairman of Premier Explosives Limited, noted that this transition represents a major milestone for PEL and the AKS Family Trust, expressing confidence that combining expertise will unlock new opportunities for innovation and sustainable growth within the indigenous defence ecosystem.

Company Profiles​

Apollo Micro Systems Ltd (AMS)
AMS is described as a 41-year veteran in defence technology. The company specializes in the design, development, and manufacture of advanced electronic, electro-mechanical, and engineering systems. AMS possesses multi-domain capabilities and robust infrastructure, positioning itself as a Tier-I Original Equipment Design Cum manufacturer capable of producing cutting-edge defence technologies at scale for national strategic needs.

Premier Explosives Ltd (PEL)
PEL is a prominent manufacturer in the high energy materials sector, serving the defence, aerospace, and mining industries. Furthermore, PEL undertakes operation and maintenance services of solid propellant plants located at the Sriharikota Centre of ISRO and the Solid Fuel Complex at Jagdalpur.

Apollo Micro Systems Ltd utilized Crawford Bayley & Co as its legal counsel for the transaction. The AKS Family Trust (Promoters) was advised by Deloitte Touche Tohmatsu India as their exclusive Transaction advisor, with Pioneer Legal serving as legal counsel.

APOLLO Stock Price Movement​

Today, Apollo Micro Systems Limited shares edged higher to close at ₹398.30 after settling for a 1.97% gain. The stock saw active trading during the session, with approximately 14.17 million shares changing hands.