The Board of Directors of Astra Microwave Products Limited convened on February 27, 2026, and granted in-principle approval for a proposed Scheme of Arrangement involving the demerger of its Space, Meteorology, and Hydrology business undertakings into a separate entity. This strategic move aims to foster focused management, specialized growth strategies, and unlock shareholder value by creating an independent business unit dedicated to these sectors.
In-Principle Approval for Strategic Demerger
Astra Microwave Products Limited announced today, Friday, February 27, 2026, that its Board of Directors has given in-principle approval for a significant corporate restructuring. The approved action is a Scheme of Arrangement to demerge the entire Space, Meteorology, and Hydrology business undertakings of the Company into a newly established, separate entity.
Rationale Behind the Move
Management believes this organizational separation will yield several strategic benefits. Key expected outcomes include:
- Enabling focused management attention on specialized growth areas.
- Achieving greater operational efficiency within the dedicated entity.
- Allowing the adoption of tailored growth strategies and capital allocation specific to the Space, Meteorology, and Hydrology sectors.
- Ultimately leading to the unlocking of value for the shareholders of the Company.
Next Steps and Authorizations
The Board has further authorized the management to engage with subject matter experts for detailed consideration by the Audit Committee and the full Board. A critical next step involves the Audit Committee appointing a Registered Valuer. This Valuer will be tasked with determining the crucial share exchange ratio for the proposed demerger.
The Valuer is also responsible for finalizing the complete structure of the demerger, including the identification of all related assets, liabilities, contracts, employees, and other essential components forming part of the business units being transferred. The Company clarified that this is only an in-principle approval; the final decision regarding the structure, ratio, and terms will be confirmed by the Board following the receipt of all requisite reports and opinions.
Source: BSE
