Apollo Strategic Technologies, a step-down subsidiary of Apollo Micro Systems (NSE:APOLLO, BOM:540879), has entered into a memorandum of understanding with US-based Dynamic Engineering and Design Incorporation, according to a Tuesday filing to the Indian stock exchanges.

The pact is for the technology transfer, co-development, and potential licensed production of rocket motors for BM-21 Grad ER and non-ER rockets. It aims to establish a co-production ecosystem in India that supports full-scale indigenous manufacturing of rocket motors and, complete rocket systems.

Apollo Group has developed the 122mm rocket warhead, which will start immediate trials, and begin full-scale production by mid-2026. The alliance will enable Apollo to integrate indigenously developed warheads with domestically produced rocket motors.

The company's shares were up over 3% in recent trade.