Astra Microwave Plans Demerger to Separate Space and Defence Units
Astra Microwave's board approved a demerger of its Space, Meteorology, and Hydrology business, aiming for a separate listing. The move could enhance shareholder value by allowing distinct market valuations for its high-growth space sector and established defence operations.
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Astra Microwave Products is set to demerge its Space, Meteorology, and Hydrology business, with an in-principle approval granted on 27 February 2026. The board will meet on 10 June 2026 to discuss the draft Scheme of Arrangement.
Astra has a longstanding relationship with ISRO, supplying significant electronics for projects like the RISAT satellite. The demerger aims to eliminate the conglomerate discount, allowing investors to focus on growth potential in the space sector.
The parent company generated ₹1,156 crore in revenue for FY26, indicating strong financial health. Management anticipates tripling turnover over five years, but the space segment's standalone financials remain unreported.
The upcoming board meeting is crucial for determining share-exchange ratios and finalizing the demerger structure. As the market seeks pure-play space investments, Astra's strategic separation could attract heightened investor interest.
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