HFCL Limited has approved an investment of Rs 89.25 crore in HFCL Advance Systems Private Limited (HASPL), its wholly owned subsidiary, through subscription to equity shares in two tranches. The board approved the investment, along with related transactions, at its meeting held on June 3, 2026. A share subscription agreement was executed among HFCL, HASPL, and other investors for a total investment of Rs 175 crore in HASPL.
HFCL also approved the disinvestment of up to 80% of the paid-up share capital of Raddef Private Limited, a non-material subsidiary, to HASPL for Rs 75 crore. HFCL currently holds 90% of Raddef's paid-up capital. HFCL will transfer its thermal weapon sight business to HASPL as a going concern on a slump sale basis for Rs 50 crore under a business transfer agreement.
HASPL will acquire 100% of the paid-up share capital of HFCL Defence Systems Private Limited from Defsys Solutions Private Limited for Rs 25 crore in cash. HFCL Defence Systems will subsequently acquire the aerostructure business of Defsys on a slump sale basis for Rs 25 crore. These acquisitions will be funded through the investment received by HASPL.
A shareholders' agreement was executed among HFCL, HASPL, and other investors including Mr Anant Nahata, BAS Engineering Private Limited, ITI Holdings and Investment Private Limited, and the DMG Group. Post completion, HFCL will hold 51.02% of HASPL. Other investors including ITI Holdings, BAS Engineering, and the DMG Group will hold the remaining stake, with 14.99% allocated to an employee trust.
The transaction consolidates HFCL's defence business under HASPL, covering aerostructure manufacturing, radar and surveillance systems, and thermal weapon sights. The platform will gain access to an export order book of approximately Rs 1,890 crore. HASPL will bring together HFCL's defence and aerospace operations under a single entity.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.