Apollo Micro Systems Limited (AMS), a leading Indian defence technology company, has signed a definitive share purchase agreement to acquire a 41.33% promoter stake in Premier Explosives Limited (PEL) in an all-cash transaction valued at approximately ₹1,550 crore. The acquisition is subject to regulatory approvals, shareholder approval and other customary closing conditions and is expected to be completed by the third quarter of the current financial year, around December 2026.
Following the completion of the transaction, Premier Explosives will become part of the Apollo Micro Systems group while continuing to operate under its existing brand. The company is expected to benefit from greater scale, stronger operational capabilities and wider business opportunities.
Premier Explosives is a well-established manufacturer of high-energy materials, rocket motors, countermeasures and munitions for the defence and aerospace sectors. It also provides operation and maintenance services for solid propellant plants at ISRO’s Sriharikota Centre and the Solid Fuel Complex at Jagdalpur.
The acquisition brings together the strengths of both companies and is expected to create a stronger domestic defence manufacturing platform. By combining Apollo’s expertise in advanced electronic and electro-mechanical systems with Premier Explosives’ capabilities in energetic materials, the two companies aim to expand their role in defence, aerospace and space programmes.
Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, said the acquisition will strengthen India’s defence manufacturing ecosystem and enhance the country’s capabilities in energetic materials and space technologies. He said the combined organisation will be better equipped to support the armed forces through advanced technology, larger production capacity and greater self-reliance in critical defence systems.
Dr AN Gupta, Founder and Chairman of Premier Explosives, said the company has built a strong reputation over several decades and expressed confidence that the partnership with Apollo Micro Systems will open new opportunities for innovation, technology development and long-term growth. He added that the transaction reflects a shared vision of building a stronger and more integrated indigenous defence and aerospace industry.
Shonika Prasad, Trustee and Promoter on behalf of the AKS Family Trust, said the agreement marks an important milestone for Premier Explosives. She thanked employees, shareholders, customers and business partners for their continued support and expressed confidence that Apollo Micro Systems will successfully lead the company’s next phase of growth while strengthening India’s defence and aerospace capabilities.
Apollo Micro Systems has over four decades of experience in designing, developing and manufacturing advanced defence systems. The company has established itself as a Tier-I original equipment designer and manufacturer with expertise across multiple defence technologies. Premier Explosives has built a strong presence in defence, aerospace and mining through its specialised products and services, making the acquisition a strategic step towards expanding indigenous capabilities in critical defence technologies.
