However, Premier Explosives declined 2.03% to Rs 700.25 on the BSE.

Under the agreement, Apollo Micro Systems will acquire 2,22,21,735 equity shares of face value Rs 2 each from the promoters of Premier Explosives. Following the acquisition, the company will gain control of Premier Explosives and will launch a mandatory open offer to acquire up to a 26% stake from eligible public shareholders at Rs 698 per equity share, in accordance with SEBI (SAST) Regulations.

According to Apollo Micro Systems, the transaction combines the complementary capabilities of both companies in defence systems and energetic materials, enabling operational efficiencies, enhanced research and development and broader participation in defence and space programmes. Upon completion of the transaction, Premier Explosives will become a subsidiary of Apollo Micro Systems while continuing to operate under its existing brand.

The acquisition is subject to customary closing conditions, including approvals from the Competition Commission of India (CCI), completion of the mandatory open offer and other statutory and regulatory approvals. The transaction is expected to be completed within five months, with closing targeted in the third quarter of FY27.

Baddam Karunakar Reddy, managing director, Apollo Micro Systems, 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”

A N Gupta, founder & chairman, Premier Explosives, 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.”

Apollo Micro Systems is a Hyderabad-based defence and aerospace technology company engaged in the design, development and manufacturing of defence electronics, embedded systems, electronic warfare suites, electro-optic systems and weapon system solutions for the Indian armed forces and global customers.

Premier Explosives manufactures high-energy materials, solid propellants for missile programmes, rocket motors, countermeasure systems and munitions for the defence, aerospace and mining sectors. It also undertakes operation and maintenance (O&M) services of solid propellant plants at the Sriharikota Centre of ISRO and Solid Fuel Complex at Jagdalpur.