Apollo Micro Systems Limited has entered into a definitive share purchase agreement to acquire a 41.33% stake in Premier Explosives Limited for ₹1,550 crore. The all-cash transaction involves the purchase of promoter shares and is expected to close in the third quarter of FY26, subject to regulatory and shareholder approvals. This strategic move aims to combine complementary capabilities in defence systems and energetic materials, enabling operational efficiencies and broader participation in defence and space-related programmes.

The Board of Directors of Apollo Micro Systems approved the acquisition at its meeting held on July 9, 2026. The deal is not a related party transaction, and none of the promoter or group companies have any interest in the entity being acquired. Upon completion, 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. The open offer price is set at ₹698 per equity share.

Transaction Details and Financials

The total consideration is valued at ₹1,550 crore, subject to customary closing adjustments as per the share purchase agreement. The acquisition is conditional upon receiving mandatory regulatory clearances, including approval from the Competition Commission of India under the Competition Act, 2002. The target company, Premier Explosives Limited, is engaged in manufacturing solid propellants for missile programs and supplying countermeasure systems to the defense, aerospace, and mining sectors.

Target Company Profile

Premier Explosives Limited was incorporated on February 14, 1980, and operates within India. The company specializes in high-energy materials and undertakes operation and maintenance services of solid propellant plants at the Sriharikota Centre of ISRO and Solid Fuel Complex at Jagdalpur. The financial metrics for the year ended March 31, 2026, indicate a turnover of ₹38,834.14 lakh and a net worth of ₹29,042.78 lakh.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE713T01028/73930a234c90469a.pdf

Apollo Micro Systems Limited has scheduled a board meeting for July 6, 2026, at its registered office in Hyderabad to consider the preferential allotment of equity shares and convertible securities, including warrants. The board will evaluate the proposal under the SEBI (ICDR) Regulations, 2018, and determine the issue price as permitted by applicable laws. The decision is subject to regulatory and statutory approvals, including shareholder consent.

The meeting agenda includes the issuance of securities on terms and conditions deemed appropriate by the board. This strategic move aims to raise capital through the preferential route, pending necessary clearances. The board's discretion will guide the final structure of the allotment.

Concurrently, the company has announced the closure of the trading window for designated persons and their immediate relatives. The window will shut from July 1, 2026, until 48 hours after the declaration of the unaudited financial results for the quarter ending June 30, 2026. This measure aligns with the company's Code of Conduct for Prevention of Insider Trading.

The closure ensures compliance with insider trading regulations during the sensitive period surrounding the board meeting and financial results announcement. The restriction applies to all equity share dealings by the specified personnel.

The board meeting will also address other agenda items or matters permitted by the chair. The outcomes will be subject to disclosure requirements mandated by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.