1600% rally in five years! Multibagger defence stock jumps 6% after THIS acquisition update

Multibagger defence stock: Apollo Micro Systems share price surged over 7% on Monday's session after the company, via its wholly owned subsidiary Apollo Defence Industries Private Limited (ADIPL), entered into a Share Purchase Agreement to take complete ownership of IDL Explosives Limited for ₹107 crore in a cash-only transaction.

The announcement was made on May 2, 2025. The completion of the transaction is anticipated to occur within two to three months, subject to regulatory and corporate approvals.

“Apollo Group is proud to announce a significant enhancement to its strategic portfolio through a landmark alignment with India’s First Explosives Company- A Pioneering, Indian-owned enterprise with a distinguished legacy of over 64 years. This esteemed organization, a proud member of the globally renowned Hinduja Group, brings unparalleled expertise and heritage to the partnership,” said the company in an exchange filing.

Through this acquisition, Apollo Micro Systems intends to incorporate explosives into its defense production process. This will enable the company to provide a wider range of systems in the areas of artillery, missiles, and high-impact weaponry.

The acquisition consists of 78.65 lakh equity shares priced at ₹136.04 each. Upon completion, Apollo Defence will hold full ownership of IDL Explosives. Both companies have stated that there are no related parties participating in this transaction.

IDL Explosives is a reputable domestic producer of industrial-grade explosives that mainly supplies the mining and infrastructure industries. It is currently a part of the Hinduja Group's GOCL Corporation. The company has a net worth of ₹10 crore and has a turnover of ₹623 crore in FY24.

Apollo Micro Systems share price

Apollo Micro Systems share price opened at ₹119.90 apiece on the BSE, the stock touched an intraday high of ₹125 per and an intraday low of ₹119.25 apiece. Apollo Micro Systems share price has surged by 1600% over the last 5 years, enriching its investors and delivering substantial multibagger returns.

Anshul Jain, Head of Research at Lakshmishree Investments stated that Apollo Micro Systems share price has been trading in a narrow range of ₹129.7– ₹103.7 for the past 12 weeks.

“Volume pattern shows a mild rise on up days and lower activity on down days, indicating accumulation. However, the absence of high-volume bars suggests institutional participation is limited. With no strong breakout signals visible, the stock is likely to continue consolidating within this band for another 8 to 10 weeks before a directional move emerges,” said Jain.

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