Astra Microwave Products Limited, a leading name in the design and manufacture of high-performance RF and microwave components and systems for defence and space sectors, has announced a major capital raise initiative through the preferential issue of 20,13,885 convertible warrants. This strategic move, approved by the company’s Board of Directors on May 20, 2025, aims to mobilise ₹173.99 crore, subject to shareholders’ and regulatory approvals. The warrants, priced at ₹864 each, will be convertible into one fully paid-up equity share with a face value of ₹2 within 18 months of allotment.

The preferential issue will be made in accordance with Section 62(1)(c) of the Companies Act, 2013, SEBI (ICDR) Regulations, 2018, and other applicable regulations. The move is considered part of Astra Microwave’s strategy to augment long-term capital, support growth plans, and strengthen the company’s balance sheet.

Key Highlights of the Preferential Issue

• The total number of convertible warrants approved for issuance stands at 20,13,885 units.

• Each warrant is priced at ₹864, aggregating the issue size to ₹1,73,99,96,640.

• The issue is to be made for cash consideration, with 25% payable upfront at subscription and the remaining 75% at the time of warrant conversion.

• Crisil Ratings Limited has been appointed as the Monitoring Agency to oversee the utilisation of funds in compliance with SEBI regulations.

• The warrants are convertible into equity shares, which if unexercised within 18 months, will lapse and be forfeited.

Strategic Investor Participation

The list of identified investors under the preferential allotment includes both promoters and high-profile non-promoter entities, signalling confidence in the company’s prospects. Notably:

1. Mrs. Renuka Chitrakar from the promoter group will receive 46,296 warrants, increasing her stake marginally from 3.12% to 3.11% post-conversion.

2. Gopikishan Shivkishan Damani, a well-known investor, will receive 5,78,703 warrants, acquiring a 0.60% stake post-conversion.

3. Mr. Suresh Kumar Somani, Kalpesh Suresh Somani Family Benefit Trust, and Ratnabali Equity Pvt. Ltd. will each get significant allotments, indicating strategic non-promoter support.

4. Atim Kabra, another prominent investor, who currently holds 3.53%, will receive 5,78,703 warrants, raising his stake to 4.06% post-conversion.

This investment by reputable market players like Gopikishan Damani and Atim Kabra underscores strong institutional faith in Astra Microwave’s operational and financial performance.

Capital Deployment & Regulatory Compliance

The proceeds from the preferential allotment are expected to be used for strategic capital expenditure, R&D, expansion, and general corporate purposes. With the appointment of Crisil Ratings Limited as a SEBI-registered monitoring agency, Astra Microwave aims to ensure transparency and compliance in fund deployment.

Additionally, the pricing of the warrants has been determined as per the SEBI ICDR Regulations, ensuring fairness and regulatory alignment. The company has also confirmed that the conversion of these warrants will be subject to shareholder and stock exchange approvals, along with other regulatory nods.

Breakdown of Warrant Allotment

Total Issue Size: ₹1,73,99,96,640
Issue Price: ₹864 per warrant
Tenure of Warrants: 18 months from date of allotment
Conversion Ratio: 1 warrant = 1 equity share

About Astra Microwave Products Ltd

Astra Microwave, headquartered in Hyderabad, is a key supplier of RF and microwave subsystems for Indian defence, aerospace and space programmes. With multiple manufacturing units across Telangana and Karnataka and an advanced R&D facility at Bangalore Aerospace Park, the company has ISO 9001, ISO 14001, ISO 45001 and ISO 27001 certifications, reflecting its commitment to quality, safety, and information security.

The company has shown consistent growth in order book strength, R&D innovation, and exports, positioning itself as a critical player in India's indigenisation of defence manufacturing. This capital infusion is expected to further bolster Astra’s financial flexibility and innovation capabilities.

SEBI & Shareholder Approvals Pending

This preferential issue remains subject to shareholder approval at the upcoming general meeting, and in-principle approval from BSE and NSE, as mandated under SEBI (LODR) Regulations, 2015. Post-approval, the company will proceed with the allotment, listing of equity shares upon conversion, and relevant disclosures.

Conclusion

The Board's approval to raise nearly ₹174 crore through convertible warrants signifies a major growth initiative for Astra Microwave Products Limited. With backing from renowned investors, clear regulatory adherence, and a defined utilisation strategy, this development is poised to strengthen the company’s market position and shareholder value in the coming quarters.

Stay tuned for further updates as Astra Microwave secures approvals and proceeds with the preferential allotment process.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Blue Water Logistics, Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries, Wagons Learning.

The Current active IPO are Borana Weaves.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst