The share of prominent defence component manufacturers gained up to 7 percent after the company’s subsidiary executed a Share Purchase Agreement to acquire 100 percent stake in IDL Explosives Limited.
With a market capitalization of Rs 3,795.87 crore, the shares of Apollo Micro Systems Ltd were trading at Rs 123.90 per share, increasing around 6.44 percent as compared to the previous closing price of Rs 116.40 apiece.
Matter Explanation
The shares of Apollo Micro Systems Ltd have seen bullish movement after Apollo Defence Industries Private Limited (“ADIPL”), a subsidiary of the Company, has executed a Share Purchase Agreement (“SPA”) to acquire 78,65,000 equity shares (100%) of IDL Explosives Limited, for a conisderation of Rs 107 crore.
Additionally, with this acquisition, Apollo aims to enhance its manufacturing capabilities in defence explosives, catering to rising domestic demand in artillery, missile, and other defence sectors. This move supports the company’s long-term vision to become a Tier-I OEM Weapon Systems Supplier, offering integrated solutions from electronics design to complete weapon systems.
IDL Explosives Limited, a wholly owned subsidiary of GOCL Corporation under the Hinduja Group, manufactures and supplies bulk explosives for mining and infrastructure. In FY 2023–24, it reported a turnover of Rs 623 crores and a net worth of Rs 10 crores, as per its audited financials.
Also read: Tata Group stock in green after LIC increases its stake to 7.851% in the company
Looking forward to the company’s financial performance, AMSL’s revenue magnified by 62 percent from Rs 91 crore in Q3FY24 to Rs 148 crore in Q3FY25, Further, during the same time frame, net profit jumped by 80 percent from Rs 10 crore to Rs 18 crore.
Apollo Micro Systems Ltd serves a distinguished clientele in the defence and aerospace sectors, including DRDO, ISRO, HAL, Bharat Electronics, and Bharat Dynamics. It also collaborates with the Indian Armed Forces and private sector giants like L&T, Bharat Forge, and Adani, reflecting its strong industry presence and credibility.
Apollo Micro Systems Limited is a major Indian firm that designs, develops, manufactures, and high-performance electronic and electromechanical systems for essential applications in aerospace, defence, space, transportation, and homeland security industries.
Written by Abhishek Singh
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