Triple-Digit PE Multibagger Defence Stock to Acquire 41.33% Stake in Premier Explosives for Rs 1,550 Crore; Shares Gain 3%

On Friday, Indian equity benchmarks traded higher, with the benchmark Nifty 50 index rising 0.93 per cent to 24,186.25. Amid the broader market strength, Apollo Micro Systems share price traded at Rs 410.65, up 3.10 per cent, after the company announced the acquisition of a 41.33 per cent promoter stake in Premier Explosives Ltd in an all-cash transaction valued at approximately Rs 1,550 crore.

Apollo Micro Systems to Acquire 41.33per cent Stake in Premier Explosives

Apollo Micro Systems has entered into a definitive share purchase agreement to acquire 41.33 per cent of the promoter shareholding in Premier Explosives Ltd for around Rs 1,550 crore. The transaction is expected to be completed during the third quarter ending December 2026, subject to regulatory approvals, shareholder approval and customary closing conditions. Following completion, Premier Explosives will operate under the Apollo Micro Systems umbrella while continuing under its existing brand.

Strengthens Defence and Aerospace Capabilities

The acquisition combines Apollo Micro Systems' expertise in defence electronics, electro-mechanical systems and engineering solutions with Premier Explosives' capabilities in high-energy materials, rocket motors, countermeasures and munitions. Management expects the combination to improve operational efficiencies, strengthen research and development, and enhance participation in India's defence and space programmes.

Management Commentary

Commenting on the acquisition, Mr Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems Ltd, said: "This acquisition strengthens our nation's defence manufacturing capability and deepens our sovereign expertise in energetic materials and space programmes. Together, we are better positioned to safeguard national security interests and support our armed forces with greater scale, resilience, and technological self-reliance."

Dr A. N. Gupta, Founder & Chairman, Premier Explosives Ltd, said: "Premier Explosives has built a distinguished legacy over the decades, and I am confident that, together, we can unlock new opportunities for innovation, technological excellence, and sustainable growth. The decision to bring Premier Explosives into the Apollo Micro Systems family reflects our shared vision of building a stronger, more integrated indigenous defence and aerospace ecosystem."

Shonika Prasad, Trustee & Promoter, on behalf of AKS Family Trust, added: "This transaction marks an important milestone for Premier Explosives and the AKS Family Trust. We are proud of the strong legacy built under Dr. A. N. Gupta's leadership and believe Apollo Micro Systems is well positioned to lead the company's next phase of growth."
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Strategic Rationale

According to the company, the acquisition will create a broader platform across the defence value chain by integrating defence electronics, propulsion technologies and energetic materials. The transaction is expected to enhance Apollo Micro Systems' capabilities in next-generation defence and space programmes while expanding its presence in critical indigenous manufacturing.

About Apollo Micro Systems

Apollo Micro Systems Limited is a Hyderabad-based defence technology company specialising in the design, development and manufacture of advanced electronic, electro-mechanical and engineering systems. With more than four decades of experience, the company supplies mission-critical solutions for defence, aerospace and homeland security applications and operates as a Tier-I original equipment design and manufacturing company. The stock is currently trading at a PE ratio of 134, significantly higher than the industry average PE of 58.4.

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Disclaimer: The article is for informational purposes only and not investment advice.