HFCL Limited has announced board approval for a Rs 89.25 crore investment in HFCL Advance Systems Private Limited (HASPL), its wholly-owned subsidiary, under a share subscription agreement. The investors include HFCL, Mr. Anant Nahata, BAS Engineering Private Limited, and ITI Holdings and Investment Private Limited. The investment will be made in two tranches. A shareholders' agreement has been executed among the parties to govern their rights in the management and affairs of HASPL.
The board has approved the sale of up to 80% of Raddef Private Limited, a non-material subsidiary in which HFCL holds 90%, to HASPL for Rs 75 crore. The thermal weapon sight business of HFCL will be transferred to HASPL on a slump sale basis for Rs 50 crore.
The HASPL board has approved the acquisition of 100% of HFCL Defence Systems Private Limited from Defsys Solutions Private Limited for Rs 25 crore. HDSPL will subsequently acquire the aerostructure business of Defsys on a slump sale basis for Rs 25 crore.
Post completion, HFCL will hold 51.02% of HASPL. Mr. Anant Nahata will hold 6.50%, ITI Holdings and Investment Private Limited will hold 14.99%, and BAS Engineering Private Limited will hold 3%. Mr. Sushant Mohan Gupta and Mrs. Shubhra Gupta will each hold 4.75%, and an ESOP trust will hold 14.99%.
The transactions will consolidate HFCL's defence capabilities under HASPL with access to an export order book of approximately Rs 1,890 crore. The platform covers aerostructure manufacturing, radar and surveillance systems, and thermal weapon sight solutions.
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.