Apollo Micro buys 41% of Premier Explosives for ₹1,550 cr, enters solid propellants
The cash deal triggers a mandatory open offer at ₹698/share, adding up to 26% more. At over 10% of Apollo's market cap, this is the company's biggest strategic bet yet.
— 3 earlier stories on Apollo Micro Systems Ltd. →What's new
- Apollo Micro signed a share purchase agreement to acquire 41.33% of Premier Explosives from promoters for ₹1,550 crore cash.
- Mandatory open offer for up to 26% from public at ₹698 per share, potentially raising total outlay.
- Acquisition marks entry into solid propellants and countermeasure systems, aligning with defence indigenization.
Why this matters
Apollo Micro is spending over 10% of its own market cap to gain control of a company in an adjacent defense space. The move diversifies Apollo's revenue base beyond its current order book of ₹1,432 cr, but raises questions about funding and integration. At a trailing P/E of 126x, the market was pricing Apollo for growth; this deal puts that growth thesis to the test.
What we're watching
- CCI and SEBI clearance timeline for the deal and open offer.
- Funding strategy — Apollo just raised ₹3,322 crore via preferential issue; how much of that will be used.
- Premier Explosives' revenue and margin profile to assess value.
The full read
Apollo Micro Systems is making its boldest move yet: ₹1,550 crore in cash to buy a 41.33% controlling stake in Premier Explosives from its promoters. The deal comes with a mandatory open offer for another 26% at ₹698 per share. For a company with a market cap of ₹14,284 crore, that is a bet worth over a tenth of its own equity. The rationale is clear: solid propellants and countermeasure systems open a new revenue stream in defence indigenization, beyond Apollo's existing order book of ₹1,432 crore. But the funding question is real. Apollo just raised ₹3,322 crore through a preferential issue, but this acquisition alone consumes nearly half of that if the open offer is fully taken. At a trailing P/E of 126x, the market already expected growth. Now Apollo has put a concrete number on that expectation. The next five months and the CCI verdict will decide whether this bet pays off.
Questions answered
- What exactly is Apollo Micro buying?
- A 41.33% stake from promoters of Premier Explosives for ₹1,550 crore in cash, giving Apollo control.
- How big is the mandatory open offer and at what price?
- An open offer for up to 26% of Premier Explosives at ₹698 per share, which could add another significant outlay if fully subscribed.
- How does the deal size compare to Apollo's financials?
- At ₹1,550 crore, the deal is about 10.8% of Apollo's ₹14,284 crore market cap and far exceeds its trailing net profit.
- Why is Apollo buying into explosives?
- It is a strategic entry into solid propellants and countermeasures, a key area of defence indigenization that Apollo hasn't played in before.
- When will the deal close?
- Expected within five months, subject to CCI approval and SEBI takeover compliance.
- How will Apollo fund this?
- Apollo recently raised ₹3,322 crore via preferential equity and warrants, likely a major source. Debt could supplement.
Apollo Micro Systems Ltd.
Latest quarter · Mar 2026
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All notes on APOLLO →- 9 Jul 2026 · 7:49 PM IST Apollo Micro buys 41% of Premier Explosives for ₹1,550 cr, enters solid propellants
- 3d ago Apollo Micro approves ₹3,322 cr preferential issue
- 11d ago Apollo Micro to consider preferential issue; details awaited
- 49d ago Apollo Micro sees large defence orders this year after record quarter