Apollo Micro Systems Ltd. has experienced a notable 5% surge in its stock price following the announcement that its wholly owned subsidiary, Apollo Defence Industries Pvt. Ltd. (ADIPL), has signed a Share Purchase Agreement to acquire 100% equity of IDL Explosives Ltd. for ₹107 crore. This deal, which was officially announced on May 2, 2025, is expected to close within two to three months, pending regulatory approvals.
IDL Explosives, which is currently a subsidiary of GOCL Corporation (part of the Hinduja Group), plays a significant role in the industrial explosives sector, primarily catering to the mining and infrastructure industries. In the fiscal year 2024, IDL Explosives recorded a turnover of ₹623 crore and a net worth of ₹10 crore, highlighting its stability and market presence.
The acquisition is particularly strategic for Apollo Micro Systems as it aims to strengthen its long-term vision of becoming a leading Tier-I Original Equipment Manufacturer (OEM) for weapon systems. By integrating defence explosives manufacturing into its operations, Apollo will diversify its portfolio, expanding its capabilities in artillery, missile, and weapon platforms.
The deal involves the purchase of 78.65 lakh equity shares, valued at ₹136.04 per share. Following the completion of this acquisition, Apollo Defence will hold full ownership of IDL Explosives, further solidifying its position in the defence sector.
On May 5, 2025, Apollo Micro Systems shares opened at ₹120.00, reaching a high of ₹124.99 and a low of ₹119.11 during the trading session. The stock has demonstrated a 52-week high of ₹157.00 and a low of ₹87.99, indicating its volatility and potential for growth.
Investors have shown considerable enthusiasm for Apollo Micro Systems, which has delivered impressive returns over the past five years, with a staggering 1500% increase. This performance is particularly noteworthy as the company has also received recent orders worth ₹7.52 crore from the Defence Research and Development Organisation (DRDO), a public sector unit, and a private company.
The acquisition of IDL Explosives is expected to enhance Apollo's manufacturing capabilities in defence-grade explosives, aligning with the growing indigenous demand for high-impact sectors such as artillery and missile systems. As the government continues to push for self-reliance in defence manufacturing through initiatives like 'Make in India', Apollo Micro Systems is positioning itself as a key player in this evolving landscape.
In terms of stock market performance, Apollo Micro Systems' shares closed at ₹115 on May 3, 2025, reflecting a slight decline for the session. Despite this, the company has seen an 8% return over the past year, with an impressive 254% gain over the last two years. Over three and five years, the returns skyrocketed by 785% and 1541% respectively, marking it as a multibagger stock.
In May 2023, Apollo Micro Systems undertook a stock split in a 10:1 ratio, which has likely contributed to increased trading activity and investor interest. This strategic move has made the shares more accessible to a broader range of investors, further enhancing liquidity in the market.
As the defence sector continues to evolve and expand in India, Apollo Micro Systems is well-positioned to capitalize on the growing demand for advanced military technologies and systems. The acquisition of IDL Explosives not only bolsters its manufacturing capabilities but also aligns with the national agenda for self-sufficiency in defence production.
In summary, Apollo Micro Systems is making significant strides in the defence sector, with the acquisition of IDL Explosives marking a pivotal moment in its growth strategy. As they expand their portfolio and enhance their production capabilities, investors will be keenly watching how this deal unfolds and its impact on the company's future performance.
