Shares of Apollo Micro Systems jumped 5% to Rs 418 on Friday after the company announced that it has signed a definitive share purchase agreement with Premier Explosives to acquire the promoters' 41.33% stake in the company through an all-cash transaction valued at around Rs 1,550 crore.
Premier Explosives operates in the high-energy materials segment and manufactures rocket motors for defence and aerospace applications, as well as countermeasures and munitions. The acquisition is expected to strengthen Apollo Micro Systems' presence in the defence and aerospace sectors by bringing together complementary capabilities in defence systems and energetic materials.
