Astra Microwave Products Ltd aims to Demerge Space, Meteorology& Hydrology Business into a Separate Listed Entity

Astra Microwave Products Limited ("Astra" or "the Company"), a leading Defence electronics company in India, today announced that its Board of Directors has given an in-principle approval to explore demerger of its Space, Meteorology and Hydrology business into a separate entity.

The proposed restructuring will result in the creation of two independent listed companies:

- Astra Microwave Products Limited: Focused exclusively on the Defence and Aerospace sector.

- Astra Space Technologies Private Limited (ASTPL): Focused on Space, Meteorology and Hydrology businesses.

It is clarified that this is an in-principle approval and the final decision on the proposed demerger, including its structure, share exchange ratio, and other terms, shall be taken by the Board after receipt of requisite reports and opinions. The Company will make appropriate disclosures in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable laws, post consideration and approval of the matter by the Board.

Strategic Rationale for the Demerger

The proposed demerger is aimed at unlocking shareholder value and enhancing strategic focus across business verticals. By separating the Defence and Space businesses into two independently managed and capitalised entities, the Company intends to:

- Enable sharper strategic and operational focus for each business
- Allow management teams to pursue sector-specific growth strategies
- Improve oversight, governance, and accountability
- Broaden the investor base by offering distinct investment propositions
- Reduce structural complexity and enhance transparency

The Board believes that creating two focused platforms will position each entity to capitalise on emerging opportunities in their respective sectors, both in India and globally.

The Company expects the transaction to be value accretive over the medium to long term by enabling MORE FOCUSED GROWTH OPPORTUNITIES, clearer capital allocation strategies and improved operational efficiencies The Space AND WEATHER business represents a SCALED UP PROFITABLE high-growth opportunity, driven by expanding DEMAND FOR satellite DESIGN & ASSEMBLY & SATELLITE DATA applications BOTH IN THE domestic and international MARKETS. ASTRA SPACE WILL OFFER A PROFITABLE & INTEGRATED PLAY ACROSS THE ENTIRE GAMUT OF UPSTREAM HARDWARE, MIDSTREAM INTEGRATION AND DOWNSTREAM DATA APPLICATIONS. However, THE BUSINESS IS capital intensive and execution-dependent REQUIRNG FOCUSED MANAGEMENT ATTENTION TO ITS SIGNIFICANT GROWTH PROSPECTS. The success of ASTPL will depend on its ability to scale technical capabilities, enhance leadership bandwidth, and expand its satellite-related offerings AND SOLUTIONS.

AMPL's Space Group has built, over 20 painstaking years, exactly the asset that the global NewSpace revolution is now demanding: certified, experienced, technically deep, and cost-competitive space hardware manufacturing capability. The Indian and global markets are opening simultaneously, India's geopolitical moment is aligned, and the demerger of ASTPL creates the structural clarity to attract capital and talent at scale.

Post-Demerger Structure

Upon completion of the transaction:

Astra Microwave Products Limited

- Will continue to focus on the Defence and Aerospace market.
- Will retain its stake in existing Joint Venture companies.
- Will continue to manage its wholly owned subsidiaries.
- Will operate as a pure-play Defence and Aerospace company.

Astra Space Technologies Private Limited (ASTPL)

- Will house the Space, Meteorology and Hydrology businesses.
- Will operate as an independently listed entity.
- Will have mirror shareholding identical to that of Astra.
- It is proposed to be listed on the BSE and the NSE.

The Space, Metrology, and Hydrology business will be transferred to Astra Space Technologies Private Limited (ASTPL) on a going-concern basis, ensuring operational continuity. The Board has authorised management to consult with subject experts on this matter for consideration by the Audit Committee and the Board. The Audit Committee shall appoint a Registered Valuer for determining the share exchange ratio for the proposed demerger, to finalise the structure of the proposed demerger, including identification of assets, liabilities, contracts, employees and other matters forming part of the Space, Meteorology and Hydrology business undertakings; and to do all such acts, deeds, matters and things as may be necessary, proper or expedient for the purpose of giving effect to this resolution.

Financial and Transaction Implications

The Company expects the transaction to be value accretive over the medium to long term by enabling clearer capital allocation strategies and improved operational efficiencies.

Approvals and Timeline

The transaction will be implemented through a Scheme of Arrangement under applicable provisions of the Companies Act and SEBI regulations.

Key approvals required include:

- Board of Directors' final approval
- Shareholders' approval
- Creditors' approval
- Stock exchange approvals
- NCLT sanction
- Other regulatory clearances, as applicable

The Company aims to complete the demerger and list ASTPL by Q1 of FY28, subject to the timely receipt of all approvals.

During the transition period, there will be no interruption to business operations, and no impact is anticipated for employees, customers, or partners.

Shares of Astra Microwave Products Limited was last trading in BSE at Rs. 992.10 as compared to the previous close of Rs. 954.30. The total number of shares traded during the day was 37990 in over 2596 trades.

The stock hit an intraday high of Rs. 1000.60 and intraday low of 954.35. The net turnover during the day was Rs. 37544992.00.

Source : Equity Bulls

Keywords

AstraMicrowaveProducts INE386C01029 Defence Demerger Space Meteorology Hydrology