Apollo Micro Systems has reached an agreement to acquire a 41.33% equity stake in defence equipment manufacturer Premier Explosives for 15.5 billion rupees, equivalent to approximately $162.50 million, the companies said on Thursday.
Under India’s takeover regime, the purchase initiates a mandatory open offer. Apollo Micro will offer to acquire up to an additional 26% of Premier Explosives from public shareholders at a price of 698 rupees per share.
The companies said the transaction remains contingent on regulatory approvals and clearances. Among the approvals required is sign-off from the Competition Commission of India. The parties expect to complete the transaction within a five-month window, subject to those approvals.
Premier Explosives is a manufacturer of high-energy materials and related products used in defence and aerospace applications, including rocket motors, countermeasures and munitions. The company will continue to operate under its existing brand identity after the change in ownership.
Apollo Micro stated that the acquisition merges its defence systems capabilities with Premier Explosives’ energetic materials expertise, creating a combined platform intended to broaden participation in defence and space programmes.
Industry consolidation in India’s defence manufacturing space has picked up in recent periods, the companies noted, attributing the trend to increased government spending and initiatives to encourage domestic production.
Summary of the transaction
- Acquirer: Apollo Micro Systems
- Target: Premier Explosives
- Stake acquired: 41.33%
- Consideration: 15.5 billion rupees (about $162.50 million)
- Mandatory open offer: Up to 26% at 698 rupees per share
- Regulatory condition: Clearance including from the Competition Commission of India
- Expected timeline: Completion within five months, subject to approvals
The agreement is presented as a strategic combination of specialised defence systems and energetic materials capabilities. Both parties framed the move as positioning them to increase involvement in defence and space-related programmes while allowing Premier Explosives to maintain its current brand and operations.
Given the regulatory steps and the open offer mechanism, the deal’s progression will depend on approvals and the response from public shareholders to the offer price of 698 rupees per share.