HFCL (NSE:HFCL, BOM:500183) approved a series of transactions to consolidate and expand its defense and aerospace business under HFCL Advance Systems or HASPL, a newly formed unit, according to a Wednesday filing to the Indian stock exchanges.
The Indian telecom equipment maker will invest 892.5 million rupees in HASPL as part of a broader 1.75 billion-rupee funding round involving several investors. Upon completion, HFCL will hold a 51.02% stake in HASPL.
The company also approved the sale of up to 80% of Raddef to HASPL for 750 million rupees and the transfer of its thermal weapon sight business to HASPL for 500 million rupees.
Separately, HASPL approved the acquisition of HFCL Defence Systems from Defsys Solutions for 250 million rupees and will invest another 250 million rupees to acquire Defsys's aerostructure business.
HFCL said the transactions will create an integrated defense platform spanning aerostructures, radar and surveillance systems, and thermal weapon sights, while providing access to an export order book of about 18.9 billion rupees.