HFCL Ltd: ₹164.25 Cr Investment & Divestment in Defence Business
HFCL Ltd's Board of Directors approved significant strategic moves in its defence business. The company will invest ₹89.25 Crore in its subsidiary, HFCL Advance Systems Private Limited (HASPL), and HASPL will acquire up to 80% of Raddef Private Limited for ₹75 Crore. Additionally, HFCL will transfer its thermal weapon sight business to HASPL for ₹50 Crore. HASPL will also acquire HFCL Defence Systems Private Limited for ₹25 Crore and subsequently invest ₹25 Crore in it to acquire Defsys's aerostructure business. These transactions aim to create a focused defence platform with an export order book of approximately ₹1,890 Crore, enhancing HFCL's capabilities in aerostructures, radar systems, and thermal weapon sights, aligning with the 'Make in India' initiative.
Key Highlights
- HFCL invests ₹89.25 Cr in subsidiary HASPL to strengthen defence business.
- HASPL to acquire Raddef (80%) for ₹75 Cr and HFCL's TWS business for ₹50 Cr.
- HASPL to acquire HFCL Defence Systems for ₹25 Cr, then invest ₹25 Cr in it.
- Transactions aim to build a scalable defence platform with ₹1,890 Cr export order book.
- Strategic move to expand presence in aerostructures and defence systems.