Apollo Micro Systems nears deal to buy Premier Explosives
A board meeting of Premier Explosives is scheduled today.
Apollo Micro Systems and Premier Explosives are both headquartered in Hyderabad.
Apollo Micro Systems makes a variety of defense related equipment to align with India’s programs for indigenization and modernization of defense capabilities. The equipment includes various types of mines for naval defense and components for missile systems.
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Premier Explosives makes explosives for defense and industrial applications.
These include explosives such as TNT (Trinitrotoluene) and propellants used to fire missiles.Premier explosives promoters own around 40% stake in the company.
Their stake was recently transferred to a trust because it was earlier held by promoters in their individual capacities.
Apollo Micro Systems and Premier Explosives had not responded to ET’s queries.
Apollo Micro Systems announced a fund raise of Rs. 3,200 crore earlier this week by issuing shares and warrants to promoter and non promoter entities. Several foreign portfolio investors, high net worth individuals and funds will participate in the funding.
India’s defense expenditure is rising and so are its exports paving the way for several private sector players to participate in the upcoming boom.
India’s defense expenditure in 2026-27 will be Rs. 7.5 lakh crore as per government data which is three fold what it used to be a decade ago.
Exports stand at over Rs. 35,000 crore.
Recently private sector players like Adani Defense and Aerospace have announced plans to ramp up investments in the defense sector. Adani recently inaugurated an upcoming project in Madhya Pradesh to manufacture TNT and propellants.
The company also has a partnership with Embraer for making aircraft.
Others such as Tata are also in joint ventures with international players like Lockheed Martin and Boeing.
Apollo Micro Systems and Premier Explosives did not respond to ET’s queries.
