GOCL Unpins IDL: Apollo Defence to Take Charge in Landmark ₹1.07 Billion Transaction

GOCL Corporation Ltd has approved the sale of its entire equity stake in its explosives business, IDL Explosives Limited, for combined consideration of ₹1.07 billion. The acquirer, Apollo Defence Industries, will be acquiring 100% of IDL Explosives, a milestone in the Indian defence and industrial explosives industry.

 

This strategic divestment is aligned with GOCL Corporation's drive towards portfolio concentration and optimization of core business activities. The divestment will most likely position Apollo Defence Industries' market presence in the explosives segment by virtue of IDL's established manufacturing base and customer base.

 

The sale comes on the heels of recent operational issues for IDL Explosives, such as a two-year ban by Coal India Limited (CIL) due to local content-related supply issues. Even with such issues, existing contracts for supplying explosives to CIL extend to late 2025, and GOCL had been optimistic of resolving issues with CIL.

 

Industry experts view the transaction as an opportunity for growth for Apollo Defence Industries, which has been venturing into the defence sector. The transaction is subject to customary closing conditions and regulatory clearances.

 

Source: Reuters