Apollo Micro Systems Limited has entered into a definitive agreement to acquire a 41.33% stake in Premier Explosives Limited for approximately ₹1,550 crore in an all-cash deal. This strategic acquisition aims to strengthen the nation's defence manufacturing capability and deepen expertise in energetic materials and space programmes. The transaction involves the purchase of promoter shares and is expected to close in the third quarter of December 2026, subject to regulatory approvals and customary closing conditions.

The Board of Directors of Apollo Micro Systems approved the acquisition at its meeting held on July 9, 2026. The consideration is payable via cash, and the deal is not a related party transaction. Upon completion, Premier Explosives will operate under the Apollo Micro Systems umbrella while retaining its existing brand. The acquirer will make a mandatory open offer to the eligible public shareholders of the target company to acquire up to 26% of the fully diluted voting equity share capital, in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Transaction Details and Financials

The transaction combines complementary capabilities in defence systems and energetic materials, enabling operational efficiencies and enhanced R&D. The total consideration is valued at approximately ₹1,550 crore, subject to customary closing adjustments. The acquisition is conditional upon receiving mandatory regulatory clearances, including approval from the Competition Commission of India under the Competition Act, 2002.

Target Company Profile

Premier Explosives Limited is a leading manufacturer of high energy materials for defence, aerospace, and mining sectors. The company also undertakes operation and maintenance services of solid propellant plants at the Sriharikota Centre of ISRO and Solid Fuel Complex at Jagdalpur. The financial metrics of Premier Explosives for the year ended March 31, 2026, indicate a turnover of ₹38,834.14 lakh.

Apollo Micro Systems Limited’s board has approved a plan to raise ₹3,322 crore through a preferential allotment of equity shares and warrants to strengthen its capital base. The issuance includes up to 22,830,902 equity shares and up to 56,915,380 convertible equity warrants, both priced at ₹416.60 per unit. The equity shares will be allotted to a select group of non-promoter investors, while the warrants will be issued to the promoter group and identified non-promoter persons.

The preferential allotment of equity shares aggregates to ₹951,13,53,825, with the issue price including a premium of ₹415.60 per share. The warrants issue totals ₹2,371,09,47,329, with each warrant convertible into one equity share within 12 months of allotment. Investors must pay 25% of the warrant subscription price upfront, while the entire preferential allotment price for equity shares is payable at the time of application.

Capital Increase and Regulatory Approvals

To facilitate the issuance, the board approved increasing the authorized share capital from ₹45 crore to ₹63 crore. This involves creating an additional 18 million equity shares of ₹1 each, ranking pari-passu with existing shares. The proposals are subject to approval from regulatory and statutory authorities, as well as the company's members.

Acuité Ratings & Research Limited has been appointed as the monitoring agency to oversee the utilization of the proceeds from the preferential issue. The board also authorized the company to borrow monies exceeding its paid-up share capital and free reserves, create security, and provide loans or guarantees under Sections 180 and 186 of the Companies Act, 2013, pending shareholder approval.

Shareholder Meeting Details

The board scheduled an Extraordinary General Meeting for August 4, 2026, via video conferencing. Ms. Sridevi Madati of M/s. MNM & Associates was appointed as the scrutinizer for the e-voting process. July 28, 2026, has been fixed as the cut-off date to determine member eligibility for voting at the meeting.

Breakdown of Allotments