Shares of Apollo Micro Systems increased by nearly 5% after its subsidiary, IDL Explosives, received a 15-year government license. The approval permits the annual manufacturing of 50 metric tonnes of HMX and 500 metric tonnes of TNT,
Shares of Hyderabad-based aerospace and defence company Apollo Micro Systems Ltd (AMSL) moved higher in early trade after its step-down subsidiary received government approval to manufacture key defence explosives, a development that investors welcomed.
The stock opened higher at Rs 229.25 on the BSE, compared with its previous close of Rs 226.55, and gained further during the session. It touched an intraday high of Rs 236.70, rising nearly 4.5%, before trading around Rs 236. The company’s market capitalisation stood at about Rs 7,921 crore.
Government clears explosives manufacturing
In an exchange filing, Apollo Micro Systems said its subsidiary, IDL Explosives Limited, has been granted an industrial licence under the Industries (Development and Regulation) Act, 1951, by the Government of India.
The licence allows the company to manufacture high-energy explosives such as HMX and TNT, which are widely used in defence and strategic applications.
15-year approval with defined capacity
The approval comes with clearly defined production limits. IDL Explosives has been permitted to produce 50 metric tonnes per annum of HMX and 500 metric tonnes per annum of TNT. The licence will remain valid for 15 years, offering long-term operational visibility.
The company said the approval would strengthen its ability to meet internal defence requirements while also creating opportunities in both domestic and international markets.
Part of a larger expansion plan
The licence comes at a time when Apollo Micro Systems is expanding its defence manufacturing footprint. Earlier, the company announced plans to invest Rs 1,500 crore in Telangana after signing a memorandum of understanding with the state government.
Under the agreement, the company and its subsidiaries will set up a greenfield manufacturing facility, aimed at expanding production capacity and explosive filling capabilities.