Astra Microwave board nods demerger of space, meteorology and hydrology business

Astra Microwave Products Limited has granted in-principle approval to demerge its Space, Meteorology and Hydrology business undertakings into a separate entity, the company said in an exchange filing on February 27.The decision was taken at a board meeting held earlier in the day. The company said the move is aimed at enabling sharper management focus and improving operational efficiency by creating an independent company dedicated exclusively to the space and allied segments.

It added that the restructuring would allow tailored growth strategies and capital allocation aligned with the specific needs of the Space, Meteorology and Hydrology businesses, while potentially unlocking value for shareholders.
The board has authorised the management to consult subject experts and place the proposal before the Audit Committee. A registered valuer will be appointed to determine the share exchange ratio.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.

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Shares of Astra Microwave were trading at ₹989, down 0.19%, as of 1:39 pm on the NSE.

Earlier this month, the company reported a mixed set of December-quarter results. 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.