Astra Microwave Products Limited has granted in-principle approval to demerge its Space, Meteorology and Hydrology business undertakings into a separate entity, as reported by CNBC TV18 and The Economic Times. The decision was taken at a board meeting held on February 27, with the company filing the announcement to stock exchanges. The move aims to enable sharper management focus and improve operational efficiency by creating an independent company dedicated exclusively to the space and allied segments.
According to the company's exchange filing, the restructuring would allow tailored growth strategies and capital allocation aligned with the specific needs of the Space, Meteorology and Hydrology businesses. As reported by The Economic Times, the demerger is expected to unlock value for shareholders while maintaining focused operations in the specialized technology sectors. The board has authorized management to consult subject experts and place the proposal before the Audit Committee for further consideration.
A registered valuer will be appointed to determine the share exchange ratio for the demerger process, as reported by CNBC TV18 and The Economic Times. The final structure of the proposed demerger, including identification of assets, liabilities, contracts and employees, will be decided after receipt of requisite reports and approvals. The company clarified that this is only an in-principle approval and that the final decision will be taken by the board at a later stage.
After the completion of the demerger, Astra Microwave Products will continue to focus on the defence and aerospace market and retain its stake in existing JV companies, as reported by The Economic Times. The new entity, Astra Space Technologies Private Limited, will house the space, meteorology and hydrology businesses and operate as an independently listed entity on BSE and NSE. The company will transfer the space, meteorology and hydrology business to Astra Space on a going-concern basis, ensuring operational continuity.
Shares of Astra Microwave were trading at ₹974.60, down around 2%, as of 2:30 pm on February 27, according to The Economic Times. The stock briefly came into the green immediately after the announcement before erasing all gains and slipping into the red. The company aims to complete the demerger by the first quarter of FY28 (April-June, 2027). The demerger will require multiple approvals including final approval from the board of directors, shareholders, creditors, stock exchanges, NCLT sanction and other regulatory clearances.
Earlier this month, Astra Microwave reported mixed December-quarter results, as reported by CNBC TV18. Net profit dipped 1.3% year-on-year to ₹46.8 crore, while revenue rose 1% to ₹260 crore. EBITDA increased 8.4% to ₹82.6 crore, with margins expanding to 31.7% from 29.5% a year ago, indicating improved operational efficiency despite the modest profit decline.
