Defence Stock Jumps 7.40% On Forming Strategic Acquisition of India’s 1st Explosives Pioneer In Rs 107 Cr Deal

Apollo Micro Systems (AMS) Ltd.'s shares began trading on the NSE on Monday at Rs 120.00 a share. During the early trading session, they soared to an intraday high of Rs 124.99, which represented a 7.40% improvement from the previous close of Rs 116.39. The defense stock was up 5.58% at Rs 122.88 a share as of 10:42 a.m. IST.

Apollo Defence Industries Pvt Ltd (ADIPL), a division of Apollo Micro Systems Ltd, signed a share purchase agreement to buy a 100% equity ownership stake in IDL Explosives Ltd for a total value of Rs 107 crore in an all-cash deal, which caused the stock price to rise.
The Apollo Group is pleased to announce a major expansion of its strategic portfolio through a historic partnership with India's First Explosives Company, a trailblazing, Indian-owned business with an illustrious 64-year history.

"This strategic move underscores Apollo's unwavering commitment to advancing indigenous capabilities in the Defence and Explosives Sectors. Together we are poised to unleash the next chapter in the spirit of Atmanirbhar Bharat, serving our great nation with innovation, strength and pride," said Apollo Micro Systems.

The acquisition sets APOLLO for a bigger role by consolidating core, high-value defense assets and know-how, bringing together more than a century of specialized expertise in the niche and expanding sector-64 years in energetics and commercial explosives, and more than 40 years in integrated weapons systems.

By expanding into high-potential markets in East and West Africa, the Middle East, South East Asia, and the Far East, the acquisition strategically expands the company's worldwide reach.

"We are proud to announce a significant milestone in our company's evolution. Having built a strong foundation as a trusted supplier of advanced weapon electronics, and recently expanding into complete weapon system design, we are now taking the next transformative step with the strategic acquisition of a leading explosives manufacturer. This acquisition represents a deliberate move toward vertical integration and full-spectrum capability enablement, allowing us to offer end-to-end solutions across the entire weapon system lifecycle-from electronics and arming mechanisms to complete munitions and integrated platforms," said Mr. Baddam Karunakar Reddy (Managing Director) at AMS.

"Notably, there are only a few players with the capability to deliver such an integrated offering, placing us in an exclusive position within the defence industry. For our customers, this means enhanced innovation, improved delivery timelines, and a unified source for highly reliable, mission-critical systems. For our shareholders, it marks a bold and future-forward growth strategy, positioning the company as a key player in the global defense landscape. Together, we are entering a new era of capability, confidence, and combat readiness. As a part of our Goals towards becoming a Weapon System Supplier from a Weapon Electronics company this explosives systems acquisition would place ourselves as a complete Tier-I Design cum Manufacturing OEM in Domestic and Global Foot Prints," he further added.

IDL Explosives is currently a part of the GOCL Corporation under the Hinduja Group. At a price of Rs 136.04 a share, 78.65 lakh equity shares are being acquired. Apollo Defence will be the sole owner of IDL Explosives once the 100% stake purchase deal is finished.