Astra Microwave Products Limited (AMPL) announced that its Board of Directors has approved a Scheme of Arrangement for the demerger of its Space, Meteorology, and Hydrology business. This division will be transferred to its wholly-owned subsidiary, Astra Space Technologies Private Limited (ASTPL), on a going concern basis. ASTPL will subsequently issue shares to AMPL shareholders. The scheme is subject to regulatory approvals.
Scheme of Arrangement Approved for Demerger
The Board of Directors of Astra Microwave Products Limited (AMPL) has officially approved a Scheme of Arrangement, marking a significant step towards demerging its Space, Meteorology, and Hydrology business. This strategic decision was made during the Board meeting held on June 10, 2026, following recommendations from the Independent Directors Committee and the Audit Committee.
Demerger Details and New Entity
The demerger involves transferring the Space, Meteorology, and Hydrology business from AMPL to its wholly-owned subsidiary, Astra Space Technologies Private Limited (ASTPL). This transfer will be executed on a going concern basis. As part of the arrangement, ASTPL will issue shares to AMPL shareholders based on a determined share ratio. The entire transaction is intended to be completed in compliance with applicable laws and tax provisions.
Rationale for the Demerger
The demerger aims to create two distinct, sector-focused listed entities. One entity will concentrate on Radar Electronics, Electronic Warfare, and Telemetry, while the other, ASTPL, will focus exclusively on Space, Meteorology, and Hydrology. The company believes this separation will allow for a differentiated growth strategy, tailored to the unique characteristics and market opportunities within the Space, Meteorology, and Hydrology sector. A standalone entity is expected to attract specific investors and strategic partners more effectively.
Financial and Shareholding Impact
The turnover of the demerged undertaking for the financial year ended March 31, 2026, was approximately INR 157 Crores, representing 13.58% of AMPL’s total turnover for that year. There will be no cash consideration involved in this scheme. ASTPL will issue 1 fully paid-up equity share of INR 2 to eligible AMPL shareholders for every 1 fully paid-up equity share of INR 2 held in AMPL, effectively mirroring the shareholding pattern of AMPL. The pre-scheme paid-up share capital of ASTPL will be cancelled and reduced.
Regulatory Approvals Required
The successful implementation of this Scheme of Arrangement is contingent upon obtaining necessary approvals from several regulatory bodies. These include the jurisdictional Hon’ble National Company Law Tribunal, the Securities and Exchange Board of India (SEBI), BSE Limited, and the National Stock Exchange of India Limited, along with any other required sanctions from relevant authorities.
Listing of Resulting Entity
The new shares of ASTPL are intended to be listed and admitted for trading on both the NSE and BSE, pending the receipt of requisite approvals from the stock exchanges. The announcement confirms that AMPL’s shareholding pattern will remain unchanged, while ASTPL, post-demerger, will reflect the shareholding of AMPL.
Board Meeting Details
The Board Meeting where this approval was granted commenced at 11:45 AM and concluded at 12:20 PM on June 10, 2026.
Source: BSE
