Apollo Defence Industries Acquires IDL Explosives for Rs.107 Crore
Apollo Defence Industries Private Limited, subsidiary of Apollo Micro Systems Ltd.has signed a share purchase agreement to acquire full ownership of IDL Explosives Ltd, in an all-cash transaction for Rs.107 Crore.
IDL Explosives is said to be a part of Hinduja Group, one of the largest diversified transnational conglomerates with investments across several sectors and a presence in over a 100 countries.
B Karunakar Reddy, Managing Director of Apollo Micro Systems Ltd., describes the deal as a landmark moment for the group’s defence ambitions.
IDL Explosives is a well-established manufacturer of a full range of packaged and bulk explosives, specifically engineered for mining and infrastructure projects. Additionally, it also offers an extensive range of cartridge explosives.
The company is observed to have posted a turnover of Rs.623 crore in FY24, holding a net worth of Rs.10 crore. Over the past three years, its revenues have seen major growth from Rs.395.38 crore in FY22.
Karunakar says, “This acquisition opens up new routes towards vertical integration and full-spectrum capability enablement, allowing AMS to offer end-to-end solutions across the entire weapon system lifecycle, from electronics and arming mechanisms to complete munitions and integrated platforms”.
This purchase involves 78.65 lakh equity shares at Rs.136.04 each amounting to Rs.107 crore. Once acquisition completed, Apollo Defence is expected to own 100 percent of IDL Explosives.
This acquisition is said to be a key step towards becoming a Tier-I Original Equipment Manufacturer (OEM) for weapon systems.
It is believed to bolster Apollo Defence’s ability to offer integrated defence solutions, combining design, electronics, platforms, and nowexplosives enabling it to offer a broader portfolio of systems across artillery, missile, and high-impact weapon domains.
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“Together we are poised to unleash the next chapter in the Spirit of Atmanirbhar Bharat, serving our great nation with innovation, strength & pride”, Karunakar continues.