Astra Microwave shares jump 15%; defence firm clarifies on corporate guarantee

Defence stock Astra Microwave Products Ltd rallied over 15 per cent in Wednesday's trade after the company said it has executed a license-cum-transfer of technology (ToT) agreement between NewSpace India (NSIL), Bengaluru and Indian National Space Promotion and Authorization Centre (IN-SPACe), Department of Space (DOS), Ahmedabad, to utilise the know how relating to MiniSAR.

The stock was also in news amid a clarification by the company on seeking approval for giving guarantee or providing security under Section 185 of Companies Act, 2013 to Astra Rafael Comsys Private Limited, a Joint Venture Company.

Following the development, the stock rose 14.50 per cent to hit a high of Rs 513.05 on BSE.

A proxy advisory firm recommended Astra Microwave's clients to vote against the resolution saying the company did not disclose the contribution of Rafael, the other parent company, in supporting the fund requirements of Astra Rafael Comsys Private Limited.

"In this regard we would like to clarify that the corporate guarantee will be given by both the promoting companies in the ratio of their respective ownership in Astra Rafael Comsys Private Limited (JV company). Rs 80 crore mentioned in the explanatory statement of the resolution pertains to Astra's share of ownership," Astra Microwave said.

Likewise, Astra Microwave said, Rafael Advanced Defense Systems Limited will contribute an amount corresponding to its share of ownership in Astra Rafael Comsys Private Limited.

Meanwhile, the TOT agreement, the company said was signed JMD MV Reddy and IN-SPACe's Technical director Rajeev Jyoti and NSIL Director A Arunachalam. Astra Microwave Products Ltd has a very robust portfolio of Radars, adding that the technology will help it enhance its robust portfolio of radars.

Also read: Toyam Sports shares hit upper circuit; stock rebound 17% in four sessions

Also read: Polycab India shares hit record high ahead of Q2 earnings; here's what to expect