Shares of defence and telecom equipment provider Astra Microwave surged up to 12 percent on May 15 after a company filing said the board will convene on May 20 to consider fund raise through debt or equity route.
"...a meeting of the board of directors of the company is scheduled to be held on 20th May, 2025 to inter alia consider a proposal for raising of funds by way of issue of equity shares or any other instrument or security including fully/partly convertible debentures or issue of non-convertible debentures or convertible warrants or any other eligible securities through qualified institutions placement/ private placement/preferential issue or through any other permissible mode and/or combination thereof as may be considered appropriate," the company statement said.
The management added that it would also consider convening an Extra-Ordinary General Meeting to seek shareholder approval for the fund raising.
Astra Microwave has been very confident of a strong pipeline of orders for FY26 as well as for FY27, and said export revenue too is poised to grow higher.
"...for FY26, we have a clear visibility of Rs 1,300-1,500 crore worth of orders which we are likely to book and which includes the domestic and as well as the export market. Then FY '27 also, we have a clear visibility of at least 20% growth in the order book. Similarly, on the revenue front also, we have clarity for the next year, that is in FY '26 of a minimum of 15% to the 20% growth we can comfortably achieve," the management had said in February 2025.
Shares of Astra Micro are higher by 37 percent in last 30 days, amid a broader rally in defence-related stocks.
A note by Choice Broking said its positive outlook for Astra Micro is based on four factors -
1) Huge addressable market worth around Rs 24000-25000 crore
2) Military modernization across Navy, Army, Air Force
3) A diversified business model
4) The company’s healthy order book
Astra Microwave has slowed down the offset opportunities where the management said margins 'are very low', and instead, thet are tilting towards 'build-to-spec' where company's is turning out products using its own intellectual property and is hoping for 10-15 percent revenue to come from exports for FY26.
Specifically, the management is confident of radar orders, including a potential Quick Reacrion Surface to Air Missile (QRSAM) project in which the company may be a partner. Another defence manufacturer BEL had said that it is expecting another QRSAM order in FY26, as part of which Astra Micro sees a Rs 1700-1900 crore opportunity for providing sub-systems.
There has been an increased focus on domestic production of defence equipment, and the management is confident that rising exports would boost earnings for defense suppliers.
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