Apollo Micro Systems-Premier Explosives deal: Multibaggers react to Rs 1,550-crore agreement 

Shares of defence firms Apollo Micro Systems and Premier Explosives reacted to the Rs 1,550-crore deal involving the former buying 41.33% stake in the latter. While Apollo Micro Systems shares rose 5% to Rs 417.90, Premier Explosives stock fell 3.29% to Rs 691.25. 

Apollo Micro Systems shares 

Market cap of the defence firm rose to Rs 14,590 crore. The stock has risen 72% in three months and gained 66% in six months. The stock also delivered multibagger returns of 286% and 789% in two and three years, respectively. The defence stock has zoomed 3524% in five years. 

Premier Explosives shares 

Market cap of the defence firm slipped to Rs 3725 crore. The multibagger stock has risen 606% in three years and gained 1794% in five years. 

The agreement was inked on Thursday. The transaction combines complementary capabilities in defence systems and energetic materials, enabling operational efficiencies, enhanced R&D, and broader participation in defence and space-related programmes.

“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, ” said Baddam Karunakar Reddy (Managing Director), Apollo Micro Systems Ltd. 

The transaction is expected to close in Third Quarter/December 2026, subject to customary closing conditions, regulatory approvals, shareholder approval, etc.

Following completion, Premier Explosives Ltd will come under umbrella of Apollo Micro Systems and will continue to operate under its existing brand, with scaled performance. 

Apollo Microsystems is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company. Its designs, develops and sells high-performance, mission and time critical solutions to defence, space and home land security for ministry of defence, government-controlled public sector undertakings and private sectors. 

Premier Explosives Limited is engaged in the business of high energy materials, rocket motors for defence & aerospace, countermeasures and munitions.