HFCL Limited announced a significant restructuring of its defence business through a series of transactions approved by its Board of Directors on June 03, 2026. The company will invest ₹89.25 Crore in its wholly-owned subsidiary, HFCL Advance Systems Private Limited (HASPL), acquiring equity shares in tranches. Concurrently, HFCL will divest up to 80% of its stake in Raddef Private Limited to HASPL for ₹75 Crore and transfer its thermal weapon sight (TWS) business to HASPL on a slump sale basis for ₹50 Crore. These transactions aim to consolidate HFCL's defence operations into a focused and scalable platform. Furthermore, HASPL will acquire 100% of HFCL Defence Systems Private Limited (HDSPL) from Defsys Solutions Private Limited for ₹25 Crore in cash. Following this, 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. This strategic move is expected to strengthen HFCL's defence business, expand its presence in aerostructures, and leverage an export order book of approximately ₹1,890 Crore, aligning with the 'Make in India' initiative. A shareholders' agreement has also been executed to govern the relationship among the parties involved in HASPL. The transactions are subject to the completion of conditions precedent outlined in the respective agreements and are anticipated to be completed within the calendar year 2026. This restructuring aims to enhance HFCL's integrated, multi-domain solutions offering in the defence sector.
