Space-related stocks fired up on February 22 after the Union Cabinet approved changes to the Foreign Direct Investment Policy (FDI) in the space sector. The government has allowed 100 percent investment under the automatic route for activities that includes manufacturing of components, systems and sub-systems for satellites.
Shares of MTAR Technologies and Data Patterns (India) zoomed nearly 6 percent, while stocks like Apollo Micro Systems, Azad Engineering, Paras Defence, Hindustan Aeronautics and L&T were up between 1 and 2 percent.
At 1:43pm, the MTAR Technologies stock was trading at Rs 2,018.95, up 6 percent, while Data Patterns (India) was up 5.86 percent to Rs 2,181.15.
Most of these companies' shares have risen in the last six months after being associated with Chandrayaan 3’s successful moon landing.
The Singapore government acquired Rs 578 crore worth of stake in Data Patterns (India) through bulk deals in February. Shares of Data Patterns (India) have surged over 16 percent over the last month.
Atim Kabra, Director - Strategy and Business Development of Astra Microwave told CNBCTV18 that Astra Micorwave expects 10 percent of its business this year to be in space and increase it to 15 percent in the next year.
Astra Microwave Products incorporated Astra Space Technologies in February. Kabra says the company incorporated the the subsidiary because the space sector requires focus and Astra intends to be a end to end player in this space.
Additionally, the government has allowed up to 49 percent FDI in the automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. Up to 74 percent FDI is allowed in automatic route for satellite manufacturing and operation, satellite data products and ground segment and user Segment.
“NGEs (non-government entities) have developed capabilities and expertise in the areas of satellites and launch vehicles. With increased investment, they would be able to achieve sophistication of products, global scale of operations and enhanced share of global space economy,” the government said in a statement.
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