Apollo Micro Systems Launches Open Offer for Premier Explosives Limited Shares at INR 698 per Share

Apollo Micro Systems Launches Open Offer for Premier Explosives Limited Shares at INR 698 per Share​

Apollo Micro Systems Limited (AMSL) has announced an open offer to acquire a stake in Premier Explosives Limited, setting the offer price at Indian Rupees 698/- per Equity Share. The move is part of a larger strategic acquisition process initiated by AMSL regarding the Target Company.

The open offer targets up to 139,77,911 equity shares, representing 26% of Premier Explosives Limited’s (Target Company) equity share capital. The maximum total consideration for this acquisition is INR 975,65,81,878, payable in cash.

The offer was announced following previous communications from the company and is subject to regulatory approval. AMSL has designated R.L.P. Securities Private Limited as the Buying Broker through whom the purchase and settlement of the tendered shares will be managed. The Tendering Period for the open offer is scheduled to commence on September 1, 2026, and conclude on September 15, 2026.

Strategic Context of the Acquisition​

The mandatory open offer follows a substantial acquisition agreement (SPA) signed on July 9, 2026, between AMSL and AKS Family Trust, the existing promoter of Premier Explosives Limited (Seller). Under the SPA, AMSL is acquiring 2,22,21,735 equity shares from the Seller. This transaction involves a purchase consideration aggregating to INR 1,550,00,00,000, which was calculated at approximately INR 697.52 per share.

The acquisition is expected to lead to AMSL acquiring sole control over Premier Explosives Limited, with the Acquirer becoming the promoter of the Target Company upon consummation of the transaction.

Profile of the Companies and Offer Details​

Premier Explosives Limited (Target Company)
Premier Explosives Limited is a publicly listed company specializing in the manufacturing of high energy materials for defence, aerospace, and mining sectors, as well as operational services related to solid propellant plants and solid fuel complexes. The Target Company’s equity shares are frequently traded on BSE and NSE, holding a face value of INR 2/- each.

Apollo Micro Systems Limited (Acquirer)
AMSL is an established public limited company engaged in the design, development, manufacturing, and supply of high-performance solutions for Defence and Space sectors. The Acquirer reported strong financial performance for the fiscal year ending March 31, 2026, with a revenue from operations totaling INR 90,432.38 lakh and a profit after tax of INR 10,738.01 lakh (both figures in Lakh).

Financial Arrangements and Offer Terms​

To ensure the stability of the transaction, the Acquirer has made specific financial arrangements concerning the open offer:

• Cash Escrow Amount: AMSL deposited INR 9,76,00,000 into an escrow account with State Bank of India on July 13, 2026.
• Bank Guarantee: An unconditional bank guarantee of INR 173,00,00,000 was provided by AMSL to the Manager to the Open Offer.

The offer price has been justified based on several parameters, including the negotiated price under the SPA and market data for the Target Company over the preceding months. The minimum price derived from these parameters is INR 697.52 per share.

Tendering Process Summary​

Participants are advised that acceptance of the open offer must be absolute and unqualified. All public shareholders are eligible to participate, including those who may acquire equity shares before the closure date.

A key feature of the process involves transparent settlement:

• Offer Size Limit: The maximum number of shares offered is 139,77,911 (26% of capital). If more shares are tendered, they will be accepted on a proportionate basis, with no lot size restriction other than one equity share.
• Payment: Accepted shares will be paid for by the Acquirer within ten working days from the closure of the Tendering Period.

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Note: The financial figures presented (e.g., Revenue, Total Income, Net Worth) are derived directly from the consolidated audited financial statements provided in the source document.

PREMEXPLN Stock Price Movement​

Premier Explosives Limited shed 1.52% today, posting a close of ₹663.6 after trading experienced some downward pressure. The stock saw significant movement in the post-market session, with total traded volume reaching 510,151 shares.