Apollo Micro Systems, a notable player in the defense sector, is set to attract attention in Monday’s trading following a significant announcement. The company, via its wholly owned subsidiary Apollo Defence Industries Private Limited, has finalized a Share Purchase Agreement to acquire IDL Explosives Limited for ₹107 crore in an all-cash deal. This announcement, made on May 2, 2025, marks a pivotal moment for Apollo as it aims to bolster its manufacturing prowess in defense explosives.
Strategic Acquisition to Enhance Manufacturing Capabilities
The acquisition is expected to be completed within the next two to three months, pending necessary regulatory and corporate approvals. This strategic move is designed to meet the rising domestic demand for defense-related products, particularly in sectors like artillery and missile systems.
- Transaction Value: ₹107 crore
- Equity Shares Acquired: 78.65 lakh shares
- Price per Share: ₹136.04
Apollo Micro Systems aims to solidify its status as a Tier-I Original Equipment Manufacturer (OEM) in weapon systems. The company’s long-term vision includes providing comprehensive solutions that encompass everything from the design of weapon systems electronics to the integration of platforms and explosives.
IDL Explosives’ Role in the Defense Sector
IDL Explosives Limited, currently a subsidiary of GOCL Corporation Limited—part of the Hinduja Group—specializes in producing bulk explosives essential for mining and infrastructure projects. According to its latest financial reports for FY 2023-24, IDL Explosives generated revenue of ₹623 crores, showcasing a robust financial foundation with a net worth of ₹10 crores.
Apollo Micro Systems Stock Performance
In the latest trading session, Apollo Micro Systems saw its stock close at ₹116.40, reflecting a minor decline of 0.64%. Over the past five years, the stock has impressively surged by 1500%, delivering substantial returns to its investors. However, it has faced challenges recently, with a decrease of 25.87% in its stock price.
Looking Ahead
This acquisition is a critical step for Apollo Micro Systems as it continues to innovate and expand within the defense industry. With the increasing demand for advanced defense solutions, this strategic move positions the company well for future growth. Investors and market watchers will be keenly observing how this transaction unfolds and its impact on Apollo’s market performance.
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