Acquisition Overview
Apollo Micro Systems announced that it will acquire a 41.33% equity stake in defence equipment manufacturer Premier Explosives for a consideration of ₹15.5 billion, equivalent to approximately $162.5 million. In addition to the initial purchase, Apollo has secured an option to acquire up to a further 26% of Premier Explosives from public shareholders at a price of ₹698 per share.
The transaction is expected to be completed within five months of signing, subject to the receipt of all required regulatory clearances, notably approval from the Competition Commission of India. Upon completion, Premier Explosives will continue to operate under its existing brand name.
Premier Explosives specializes in the production of high‑energy materials, rocket motors, counter‑measure systems and munitions serving the defence and aerospace sectors. Apollo Micro Systems stated that the acquisition will combine the two companies’ defence systems and energetic materials capabilities, thereby expanding their participation in both defence and space programmes.
The deal reflects a broader trend of consolidation in India’s defence manufacturing industry, which has been accelerated by heightened government defence spending and policies encouraging domestic production of critical defence equipment.