Apollo Micro Systems jumps 8% after buying IDL Explosives for Rs 107 crore

Shares of Apollo Micro Systems surged over 7 per cent intraday on May 5 after the company announced that its subsidiary, Apollo Defence Industries, signed a definitive pact to acquire 100 per cent equity in IDL Explosives for Rs 107 crore. The smallcap counter opened with a strong upside at Rs 120 on the NSE, up from its previous close of Rs 116.30, and touched an intraday high of Rs 125.38, gaining as much as 7.7 per cent.

Deal details: 100% acquisition of IDL Explosives

According to its stock exchange filing, Apollo Defence Industries has executed a share purchase agreement to acquire IDL Explosives Ltd, which is currently a subsidiary of GOCL Corporation Ltd. The deal will bring Apollo into the business of high-energy materials and bulk explosives, commonly used in mining and infrastructure sectors.

IDL Explosives was incorporated in 2010 and boasts of over 64 years of experience in the energetics and commercial explosives space through its lineage. The deal will add significant muscle to Apollo’s defence capabilities and help build a vertically integrated product line.

Strategic value: Building a full-stack defence player

Apollo said the acquisition would allow it to mitigate external dependencies and foster co-production and R&D under one unified infrastructure. The integration will position the group as a one-stop provider of solutions ranging from propellant manufacturing to integrated weapon systems, giving it an edge in catering to diverse munitions needs.

“The acquisition creates a uniquely positioned defence entity capable of delivering end-to-end solutions across the munitions and weapons value chain,” the company noted.

Technical view: Stock riding on bullish averages

The stock is currently trading above its 5-day, 20-day, 50-day, 100-day and 200-day moving averages, indicating bullish momentum. Over 1.74 crore shares changed hands on the NSE around 2 PM, showing robust investor interest.

Multibagger returns: Long-term investors sitting on huge gains

Apollo Micro Systems, part of the BSE SmallCap index, has delivered stellar returns:

• 1-year: +16%

• 2-year: +266%

• 3-year: +881%

• 5-year: +1473%

With this acquisition, Apollo is expected to deepen its presence in the defence supply chain and strengthen its role as a key player under India’s self-reliant mission.