Apollo Micro Systems Expands Horizons with Strategic Acquisition

In a noteworthy move, Apollo Micro Systems saw its share price jump by over 7% during Monday’s trading session. The surge followed the announcement that the company’s subsidiary, Apollo Defence Industries Private Limited (ADIPL), has entered a Share Purchase Agreement to acquire IDL Explosives Limited for ₹107 crore in an all-cash deal. This significant development was disclosed on May 2, 2025, and the transaction is expected to finalize within two to three months, pending necessary regulatory and corporate approvals.

Strategic Acquisition of IDL Explosives

Apollo Micro Systems expressed enthusiasm about this acquisition, which enhances its strategic portfolio. The company highlighted its alignment with IDL Explosives, renowned as India’s first explosives manufacturer with a remarkable legacy spanning over 64 years. As a member of the esteemed Hinduja Group, IDL Explosives brings a wealth of expertise and a rich heritage to this partnership.

• Acquisition Details:
  • Total Shares: 78.65 lakh equity shares
  • Share Price: ₹136.04 each
  • Total Value: ₹107 crore

This acquisition will enable Apollo Micro Systems to integrate explosives into its defense production processes, thereby expanding its capabilities in artillery, missiles, and high-impact weaponry systems. Notably, both companies confirmed that no related parties are involved in this transaction.

Financial Overview of IDL Explosives

IDL Explosives is recognized as a leading domestic supplier of industrial-grade explosives, primarily serving the mining and infrastructure sectors. Currently part of the Hinduja Group’s GOCL Corporation, IDL boasts a net worth of ₹10 crore and recorded a turnover of ₹623 crore in FY24.

Share Price Performance

On the BSE, Apollo Micro Systems opened at ₹119.90 per share, reaching an intraday high of ₹125 and a low of ₹119.25. Over the past five years, the stock has skyrocketed, delivering an impressive 1600% return to investors, marking it as a standout multibagger.

Market Insights

According to Anshul Jain, Head of Research at Lakshmishree Investments, the stock has been fluctuating within a narrow range of ₹129.7 to ₹103.7 over the past twelve weeks. Jain noted that while there’s been a mild increase in volume on upward trading days, the overall activity on downward days has been lower. This pattern suggests accumulation, but the lack of high-volume trading indicates limited institutional participation.

• Future Outlook:
  • Expected consolidation within the current price band for 8 to 10 weeks before a potential directional breakout.

With this strategic acquisition, Apollo Micro Systems is poised to strengthen its position in the defense sector while providing investors with a promising outlook for further growth.