Apollo Micro Systems Shares Rebound Amid Acquisition News
Apollo Micro Systems shares saw a rebound of 3% during Monday's trading session on the NSE, recovering from an intraday low of ₹389.65. The stock opened the day at ₹402, following a previous close of ₹398.75. This market activity follows the company's announcement regarding funding for its acquisition of shares in Premier Explosives Limited (PEL).
To facilitate the transaction, Apollo Micro Systems has deposited ₹986.35 crore into a special escrow account held with the State Bank of India (SBI). This payment covers the acquisition of 1,39,77,600 equity shares, which accounts for 26% of the equity capital of Premier Explosives. The open offer, which ran from October 12, 2026, to October 26, 2026, saw a positive response from public shareholders and was oversubscribed by 1.41%. The acquisition process was initiated under a Share Purchase Agreement signed on July 9, 2026, and complies with SEBI regulations regarding substantial acquisition of shares.
The stock has shown significant momentum, with a year-to-date increase of 44.91% and a 44.49% gain over the past year. Longer-term performance metrics indicate a 314.24% rally over three years and a 3,324.23% return over five years. Recent short-term performance includes a 2.66% rise over the past week and a 1.51% gain over the last month.
Market analysts have provided varying outlooks on the stock. Sumeet Bagadia of Choice Broking suggests a buy-and-hold strategy for existing and new investors, recommending a stop-loss at ₹399 with a near-term upside target of ₹470. Mahesh M. Ojha from Kantilal Chhaganlal Securities maintains a positive fundamental outlook based on business prospects and quarterly results, suggesting an accumulation strategy for a 3-6 month horizon with a stop-loss below ₹370 and upside targets ranging from ₹440 to ₹475-plus.
For investors, the successful escrow deposit signals that the acquisition of Premier Explosives is moving forward as planned, potentially stabilizing investor sentiment. Monitoring the stock's ability to maintain these technical levels while the acquisition integration proceeds will be key to determining if the long-term growth trend continues.
Why it matters
The successful funding of this acquisition marks a critical milestone for Apollo Micro Systems, potentially impacting its valuation and market position within the defence sector.
FAQ
What is the status of the acquisition of Premier Explosives Limited?
Apollo Micro Systems has deposited the full purchase consideration of ₹986.35 crore into a special escrow account with SBI to acquire 26% of Premier Explosives' equity capital.
How did the open offer for Premier Explosives shares perform?
The open offer, which ran from October 12 to October 26, 2026, was oversubscribed by 1.41%.
What are the recommended stop-loss levels for Apollo Micro Systems?
Analysts have suggested different stop-loss levels: Sumeet Bagadia recommends ₹399, while Mahesh M. Ojha suggests maintaining a stop-loss below ₹370.
Source: Mint Markets. See the original source for full details.
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