HFCL Limited's board of directors, in a meeting held on June 3, 2026, approved a series of strategic transactions aimed at bolstering its defence business. The company will invest ₹89.25 Crore in its wholly-owned subsidiary, HFCL Advance Systems Private Limited (HASPL), through a share subscription agreement. This investment, to be made in two tranches, will result in HFCL holding a 51.02% stake in HASPL, with other investors including Mr. Anant Nahata, Mr. Sushant Mohan Gupta, Mrs. Shubhra Gupta, BAS Engineering Private Limited, and ITI Holdings and Investment Private Limited also participating. In a related move, HFCL will divest up to 80% of its stake in Raddef Private Limited, another non-material subsidiary, to HASPL for ₹75 Crore. Additionally, HFCL will transfer its thermal weapon sight (TWS) business to HASPL on a slump sale basis for ₹50 Crore. Furthermore, HASPL will acquire 100% of HFCL Defence Systems Private Limited (HDSPL) from Defsys Solutions Private Limited for ₹25 Crore in cash. Subsequently, HASPL will invest ₹25 Crore in HDSPL to facilitate HDSPL's acquisition of the aerostructure business of Defsys on a slump sale basis for ₹25 Crore. These transactions are intended to establish a focused and scalable platform within HASPL to strengthen HFCL's defence business, expand its presence in aerostructures, and leverage an existing export order book of approximately ₹1,890 Crore. The move aligns with the 'Make in India' initiative and aims to enhance HFCL's integrated, multi-domain solutions offering in the defence sector.
