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August 25, 2015

Astra Microwave gains on joint venture with Rafael


 
Shares of Astra Microwave Products have moved higher by 7% to Rs 119, bouncing back 17% from their intra-day lows on the BSE in an otherwise weak market, after the company announced the formation of a joint venture company (JVC) with M/s Rafael Advanced Defence Systems Ltd., Israel, for joint production and supply of tactical radio communication systems, electronic war-fare systems and signal intelligence systems.

The JVC will operate from Hyderabad and is expected to start business development activities in the first half of 2016. About US $20 million is expected to be invested in the first two years in the JVC, Astra Microwave said in a filing.

To start with, Astra and M/s Rafael will own 51:49 in the JVC and will become 50:50 subject to regulatory approvals, the company added.

Businessstandard

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