Multibagger Defence Stock To Acquire 100% Stake In Explosives Maker For Rs 107 Cr

Apollo Micro Systems Ltd. (AMS) stated on Friday that Apollo Defence Industries Private Limited, a subsidiary of AMS, has executed a share purchase agreement (SPA) for the acquisition of IDL Explosives Limited.

After the announcement, Apollo Micro Systems' stock price dropped 0.64% on the BSE to close at Rs 116.40 a share, with a market value of Rs 3,567.54 Cr.

"We wish to inform you that Apollo Defence Industries Private Limited ("ADIPL") a subsidiary of Apollo Micro Systems Limited ("the Company"), has on 02nd May, 2025 executed a Share Purchase Agreement ("SPA") for the acquisition of 100% equity shareholding of IDL Explosives Limited ("Target Entity"), a company engaged in the manufacture and supply of bulk explosives used in mining and infrastructure projects," said Apollo Micro Systems in a stock exchange filing on Friday.

The purpose of this acquisition is to serve the growing domestic demand in artillery, missiles, and other high-impact defense domains by enhancing Apollo Micro Systems Ltd.'s manufacturing capabilities in the field of defense explosives.

"Through this transaction, the Apollo Group takes a significant step forward in its long-term vision of emerging as a Tier-I OEM Weapon Systems Supplier, offering comprehensive solutions under one roof-from the design of Weapon Systems electronics to complete Weapon Systems solutions provider including platforms and explosives," Apollo Micro Systems informed stock exchanges.

It has been proposed that the shares be acquired for a total of Rs 107 crores, representing Rs 136.04 per share. 78,65,000 equity shares, or 100% of the entire stake of IDL Explosives, will be acquired. Apollo Defence Industries Private Limited will own all of the target company's equity share capital after its acquisition.

Bulk explosives for mining and infrastructure projects are manufactured and supplied by IDL Explosives Limited, a fully owned subsidiary of GOCL Corporation Limited, a member of the Hinduja Group. The company's latest audited financials for FY 2023-2024 showed a net worth of Rs 10 crores and a turnover of Rs 623 crores.

Founded in 1985, Apollo Micro Systems (AMS) is a leader in the development, production, and manufacturing of electro-mechanical and custom-built electronics. AMS provides cutting-edge technology-based solutions for its main customers in the aerospace, defense, and space industries. It also serves the railway, automotive, and homeland security sectors.

With a share price growth of 1,522.00% over the previous five years and 786% over the last three years, Apollo Micro Systems is one of D-Street's multibagger stocks. Apollo Micro Systems has a high and somewhat pricey PE ratio of 63.64.