Apollo Micro Systems Acquires 41.33% Stake in Premier Explosives Limited, Launches Open Offer

Apollo Micro Systems Acquires 41.33% Stake in Premier Explosives Limited, Launches Open Offer​

Apollo Micro Systems Limited has entered into a Share Purchase Agreement (SPA) for the acquisition of a significant stake in Premier Explosives Limited (PEL), simultaneously announcing a mandatory open offer to the public shareholders. The deal represents a strategic move aligned with indigenous defense sector growth objectives.

The SPA involves Apollo Micro Systems Limited as the Acquirer, and Mrs. Shonika Prasad and Mrs. Kailash Gupta, acting as authorized trustees of the AKS Family Trust, representing the Promoter. Under the terms of the executed agreement, the Acquirer has committed to purchasing 2,22,21,735 equity shares from the Promoter, which translates to 41.33% of the issued, subscribed, and paid-up equity voting share capital of Premier Explosives Limited.

Following the execution of the SPA, the Acquirer is obligated to conduct a mandatory open offer under SEBI SAST Regulations for up to 26% of the fully diluted voting equity share capital of the company from the public shareholders. The Open Offer is being conducted at a price of INR 697.52 per equity share, which was determined in accordance with SAST Regulations.

Transaction Details and Objectives​

The acquisition is described as being completely outside the scope of any related party transaction, with no interest held by the Promoter group or its companies in the entity being acquired. The deal is centered on building an integrated, end-to-end indigenous defense platforms ecosystem, supporting the Government of India's Aatmanirbhar Bharat and Make in India initiatives.

Premier Explosives Limited operates as a manufacturer of solid propellants for missile programs and supplies countermeasure systems to the Indian defense, aerospace, and mining sectors. The company was incorporated on February 14, 1980, and has operations based in India.

The completion of the transactions contemplated under the SPA is conditional upon securing mandatory regulatory and statutory clearances, including approval from the Competition Commission of India (if applicable), fulfilling all conditions precedent stipulated in the SPA, and compliance with SEBI SAST Regulations. The indicative timeframe for completing the acquisition was set at 4 to 5 months.

Financial and Operational Profile​

Key details regarding Premier Explosives Limited and the proposed transaction are summarized below:


The turnover figures for Premier Explosives Limited over the last three years are as follows:

PREMEXPLN Stock Price Movement​

Today, Premier Explosives Limited shares edged higher to close at ₹714, gaining 4.17% after the post-market session. The stock saw active trading throughout the day, with approximately 1.48 million shares being transacted.