Apollo Micro Systems Limited received confirmation from the Competition Commission of India (CCI) that its acquisition of Premier Explosives Limited does not require regulatory approval. The CCI determined the transaction falls below notification thresholds, clearing the path for the open offer to proceed.

The regulator observed that Premier Explosives' turnover for FY26 was less than ₹1,250 crore. Consequently, the proposed combination does not exceed the asset or turnover limits specified under the Competition (Minimum Value of Assets or Turnover) Rules, 2024, and Section 5(e) of the Competition Act, 2002.

Regulatory clearance details

Apollo Micro Systems had voluntarily filed an application with the CCI on August 11, 2026, regarding its acquisition of a 41.33% stake in Premier Explosives under a Share Purchase Agreement dated July 9, 2026. The filing was made as a precautionary measure to ensure complete compliance.

In its order dated September 22, 2026, the CCI concluded that the target company qualifies as de minimis for the purposes of asset and turnover thresholds under Sections 5(a) to 5(c) of the Act. Therefore, the transaction is not classified as a combination under Section 5(d) and is not a notifiable transaction.

Open offer to proceed

With the CCI position settled, the open offer to public shareholders of Premier Explosives will move forward in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The revised schedule of offer activities, including the tendering period, will be announced by the Manager to the Open Offer.

Strategic integration

Karunakar Reddy Baddam, Managing Director of Apollo Micro Systems, stated that the proactive approach to regulatory compliance ensures every step of the acquisition remains beyond question. He noted that Premier’s strengths in high-energy materials and propellants complement Apollo’s capabilities in defence electronics, guidance, and weapon systems integration.

Together with IDL Explosives Limited, these assets strengthen the Apollo Group’s position as an integrated, indigenous defence platform aligned with the Government of India’s Aatmanirbhar Bharat vision. Premier Explosives manufactures solid propellants, explosives, and pyrotechnic devices for defence, space, and mining applications.

Apollo Micro Systems Limited has submitted clarifications to the National Stock Exchange regarding observations on its Extra-Ordinary General Meeting notice. The filing addresses disclosures for a proposed preferential issue involving 2,28,30,902 equity shares and 5,69,15,380 equity warrants.

The company responded to NSE letter No. NSE/LIST/56336, which raised queries on the explanatory statement and notice content. Apollo Micro Systems stated that it has incorporated the requisite corrections and clarifications into its relevant disclosures to ensure compliance with SEBI Listing Regulations.

Allottee Shareholding Details

The company enclosed Annexure-1, detailing the pre and post-issue shareholding pattern of the proposed allottees. The list includes institutional investors, funds, and individual subscribers, all categorized as non-promoters except for two promoter group entities receiving warrants.

Key institutional allocations include:

Promoter Group Participation

Two members of the promoter group are participating in the warrant portion of the issue. Chanakya Reddy Baddam and Kanishka Reddy Baddam are each set to receive 1,30,50,000 equity warrants. Their pre-issue holding stands at 84,00,600 shares each (2.261%), which will increase to a post-issue holding of 2,14,50,600 shares (4.809%) upon conversion.

Regulatory Compliance

The clarification was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director Karunakar Reddy Baddam signed the digital submission dated September 22, 2026, confirming that the updated table showing the shareholding pattern has been taken on record by the stock exchanges.