With India’s space program on the rise, many investors are looking for ways to invest in ISRO and India’s space industry. ISRO, or Indian Space Research Organization, is the pioneer of India’s space program and has achieved major milestones like the Mars Orbiter Mission and the Chandrayaan lunar probes. While ISRO is state-owned, the opening up of the space sector has allowed private companies to provide launch services, build satellites and develop applications. This presents new opportunities for investors looking to benefit from the growth of India’s space economy. Here is a beginner’s guide to investing in ISRO and India’s space sector.
Invest in Listed Companies Supporting ISRO’s Missions
Many listed companies manufacture components, provide technology and offer services to support ISRO’s missions. Investors can benefit by investing in the stocks of these companies. For instance, companies like MTAR Technologies, Walchandnagar Industries and Hindustan Aeronautics have been associated with ISRO’s launch vehicles and satellites. MTAR Technologies manufactures critical assemblies and liquid propulsion engines for ISRO and has worked on the GSLV Mk-III rocket. Its IPO in 2021 was heavily oversubscribed. Hindustan Aeronautics has partnered with ISRO to build satellite structures and other components. Investing in such ISRO partners can give exposure to India’s space industry.
Invest in Satellite and Launch Startups
The opening up of the space sector has led to the emergence of many private space startups looking to offer satellites and launch services. Startups like Agnikul, Skyroot Aerospace and Bellatrix Aerospace are developing innovative launch vehicles suited for small satellites. Companies like Pixxel, Vesta Space Technology and Dhruva Space build and operate remote sensing and communication satellites for commercial applications. Though early stage, these startups offer immense growth potential. Venture capital firms and angel investors are actively funding promising space startups. Retail investors may be able to invest in these startups when they eventually go for an IPO.
Invest in Space Infrastructure like Spaceports
To support the private space industry, India is setting up space infrastructure like spaceports for launches and ground stations for satellite operations. The government has approved setting up a national spaceport in Tamil Nadu where companies like Agnikul can launch their rockets. Other states are also vying to house spaceports. The Kerala government plans to build a spaceport to tap into the potential. Investors can benefit by investing in infra companies involved in developing spaceports, ground segments and processing facilities as the commercial space industry takes off.
Invest in Space Technology and Applications
With the rising use of space data and applications, companies involved in space technology and downstream services present investment opportunities. Firms like Ananth Technologies, Earth2Orbit and Dhruva Space build software systems to operate and maintain satellites in orbit. GIS and mapping companies like Mahindra NSE -0.31 % and Esri India use satellite imagery and location intelligence platforms. Various startups are using space tech to provide IoT, analytics and other solutions across sectors like agriculture, mining and environment. Investing in the wider space technology ecosystem can offer exposure beyond just launch vehicles and satellites.
Invest in Space Funds and Investment Vehicles
For investors looking for a passive investment into the space sector, mutual funds and investment products are available. In 2021, Axis Growth Avenues FoF launched a space tech fund of funds focused on investing in startups. In 2022, defence sector investor Fairfax India announced it would invest $100 million into space infrastructure. It partnered with Agnikul for the investment. The government is planning a Space Exchange for startups to list and raise funds. When this materializes, it can enable retail investors to gain exposure to space stocks.
India’s space sector is rapidly evolving with ISRO opening up opportunities for private companies across launch, satellite and application segments. Investors can gain exposure by investing in listed companies supporting ISRO, satellite and launch startups, space infrastructure builders and space tech players. As the space industry grows, more avenues like dedicated funds and a Space Exchange will enable investment.