Apollo Micro Systems has announced plans to acquire a 41.3% stake in Premier Explosives Ltd for ₹1,550 crore, marking one of the biggest deals in India’s defence manufacturing sector. The acquisition is expected to strengthen Apollo Micro’s presence in defence, aerospace and high-technology manufacturing.
The company will purchase the stake from Premier Explosives’ existing promoters and other shareholders, subject to regulatory approvals and customary conditions. Following the transaction, Apollo Micro Systems will become the largest shareholder in Premier Explosives and will also make an open offer to acquire additional shares in accordance with market regulations.
Premier Explosives is a well-established manufacturer of explosives, propellants and defence-related products, supplying both the Indian armed forces and organisations involved in the country’s space programme. The company also serves mining and infrastructure sectors, making it a strategic addition to Apollo Micro’s expanding portfolio.
Apollo Micro Systems said the acquisition aligns with its long-term strategy of building integrated capabilities across defence electronics, aerospace systems and advanced manufacturing. The company expects the partnership to create operational synergies, broaden its product offerings and strengthen its participation in India’s growing defence ecosystem.
The announcement was well received by investors, with Apollo Micro Systems’ shares rising around 5% in early trade. Market participants viewed the deal as a significant step towards expanding the company’s scale and positioning it to benefit from rising government spending on defence and indigenous manufacturing.
Industry analysts believe the acquisition will help Apollo Micro diversify its capabilities while supporting India’s push for self-reliance in defence production under the ‘Make in India’ initiative. The combination of defence electronics expertise with explosives and propulsion technologies could open new opportunities in missile systems, ammunition and space applications.
The companies are expected to work closely to explore technology sharing and strengthen manufacturing capabilities after the transaction is completed. Analysts also see potential for increased collaboration on future defence projects and exports.