Apollo Micro Systems has entered a definitive agreement to acquire 41.33% of Premier Energies for approximately ₹1,550 crore in an all-cash deal. It will acquire shares from the promoters of Premier Explosives for ₹698 per share.
The transaction is expected to close in December 2026, post which Premier Explosives will come under the umbrella of Apollo Micro Systems and will continue to operate under its existing brand, with scaled performance.
The company has made a mandatory open offer to the eligible public shareholders of the target company for the acquisition of up to 26% stake.
Apollo Micro Systems can own up to 67.33% of Premier Explosives. The company will also launch a mandatory open offer to acquire an additional 26% stake at ₹698 per share.
The transaction will combine complementary capabilities in defence systems and energetic materials in both companies, enable operational efficiencies and enhanced R&D, bring about broader participation in defence and space-related programmes and support next-generation defence and space programs.
Apollo Micro Systems à advanced electronic, electro-mechanical, and engineering systems. Premier Explosives Limited à High Energy Materials, rocket motors for defence & aerospace, countermeasures and munitions; manufacturing solid propellants for missile programs and supplying countermeasure systems to the Indian defense, aerospace, and mining sectors.
The deal values Premier Explosives at ₹3,753 crore, compared to its current market capitalisation of ₹3,833 crore.
Shares of Apollo Micro Systems gained as much as 4.4% up to ₹415.65 apiece after market open. The stock has gained 51% this year, so far.
At the end of the March quarter, Premier Explosives promoters held 41.33% stake in the company, while public shareholders held 58.67% stake, as per data available on the exchanges.
Shares of Premier Explosives on the other hand, are trading 1.7% lower on Friday at ₹701.75, near the acquisition price of ₹698 per share.
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