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 investment is part of a restructuring that will bring in external investors including Mr Anant Nahata, ITI Holdings and Investment Private Limited, and BAS Engineering Private Limited. Post completion, HFCL will hold 51.02 per cent of HASPL, which will remain a subsidiary.
The board of HASPL has approved the acquisition of 100 per cent of HFCL Defence Systems Private Limited (HDSPL) from Defsys Solutions Private Limited for Rs 25 crore. HDSPL will then acquire the aerostructure business of Defsys on a slump sale basis for an equal amount. A share purchase agreement has been executed among the parties, subject to completion of conditions precedent.
HFCL will disinvest up to 80 per cent of its stake in Raddef Private Limited, a non-material subsidiary, to HASPL for Rs 75 crore. HFCL will also transfer its thermal weapon sight (TWS) business to HASPL as a going concern on a slump sale basis for Rs 50 crore. These transactions are expected to be completed in calendar year 2026.
A shareholders' agreement has been executed among HASPL, HFCL, and the incoming investors to govern rights including board composition, affirmative voting rights, and transfer restrictions. The HASPL board will comprise six directors, with HFCL Group nominating four and the DMG Group nominating two.
The consolidated defence platform under HASPL will provide HFCL access to an export order book of approximately Rs 1,890 crore, along with established capabilities, certifications, and customer relationships. The restructuring brings together aerostructure manufacturing, radar and surveillance systems, and thermal weapon sight solutions 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.