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News: Astra Microwave Products has received in-principle approval for the issuance of 20,13,885 warrants (each convertible into an equity share to promoters and non-promoters on a preferential basis) at Rs 864 (discount of ~23% from yesterday's closing price), aggregating to ~Rs 174 crore.
View: The fund raise is expected to support the company's strategic plan of design & development of new indigenous products across defence & space electronics (including critical sub-systems/systems for various airborne, naval, ground-based and space platforms). The management estimates a total addressable market of ~Rs 20000-25000 crore for its product portfolio and plans to majorly capture it in the next few years. Current order backlog of ₹ 2304 crore as of Mar 2025 (2.2x FY25 revenue) already provides healthy revenue visibility.
Impact: Positive