Astra Microwave Products Limited announced that its Board has given in-principle approval to explore the demerger of its Space, Meteorology, and Hydrology (SMH) business into a separate, independently listed entity, tentatively named Astra Space Technologies Private Limited (ASTPL). The remaining entity, Astra Microwave Products Limited, will focus exclusively on Defence and Aerospace. The move aims to unlock shareholder value and enhance strategic focus. Completion is targeted by Q1 of FY28.
Proposed Restructuring Creates Two Focused Entities
Astra Microwave Products Limited announced on February 27, 2026, that its Board has granted in-principle approval to explore the demerger of its Space, Meteorology, and Hydrology business segment. This restructuring is designed to create two independent listed companies, allowing each to pursue specific growth strategies and attract tailored investment.
The post-demerger structure will see the creation of:
- Astra Microwave Products Limited: This entity will focus exclusively on the Defence and Aerospace sector, continuing to manage existing Joint Ventures and wholly owned subsidiaries.
- Astra Space Technologies Private Limited (ASTPL): This new entity will house the Space, Meteorology, and Hydrology businesses. It is proposed to operate independently and will have mirror shareholding identical to Astra, seeking listing on both the BSE and NSE.
Strategic Rationale for Separation
The primary goal of the proposed demerger is unlocking shareholder value and enhancing strategic alignment across different business verticals. By separating Defence from the Space segment, the Company intends to:
- Enable sharper strategic and operational focus for each business.
- Allow management teams to pursue sector-specific growth strategies.
- Broaden the investor base by offering distinct investment propositions.
- Reduce structural complexity and enhance transparency.
The Space and Weather business is identified as a profitable, high-growth opportunity, driven by expanding satellite demand. The existing Space Group has over 20 years of certified hardware manufacturing capability. Separating this capital-intensive segment is expected to provide the structural clarity needed to attract capital and talent at scale.
Business Heritage and Order Book Highlights
The Company highlighted its strong operational history in both sectors:
- Space Domain: Since 2001, Astra has executed cumulative orders worth over ₹750 crore for ISRO across major missions (GSAT, RISAT, etc.). An additional ₹250 crore of orders are slated for execution by FY28.
- Meteorology and Hydrology: This segment has executed cumulative contracts worth over ₹330 crore over the last two decades, supplying systems like Automatic Weather Stations and Doppler Weather Radars to agencies like IMD and ISRO. The current order book in this segment stands at ₹285 crore to be executed by FY28.
Implementation and Timeline
The transaction will be implemented via a Scheme of Arrangement under applicable corporate laws. Key required approvals include the final approval from the Board, Shareholders, Creditors, Stock Exchanges, and the NCLT sanction.
The Management aims to complete the demerger and achieve the listing of ASTPL by the first quarter (Q1) of FY28, subject to timely regulatory clearances. The management confirmed that no interruption to business operations or impact on employees, customers, or partners is anticipated during the transition period.
Source: BSE
