Hindustan Aeronautics Ltd

Acquisition of 50% Stake in HATSOFF Helicopter Training Pvt Ltd from CAE Canada

Main Body

Hindustan Aeronautics Ltd (HAL) has entered into an agreement on 2nd October 2026 for the acquisition of 50% stake in HATSOFF Helicopter Training Pvt Ltd from M/s CAE, Canada. The acquisition involves 3,84,04,205 equity shares (face value of ₹10 each) at nil consideration.

Financial Details: The transaction involves no cash consideration. HATSOFF has an authorized capital of ₹76.84 crores and paid-up capital of ₹76.80 crores. The company reported turnover of ₹80.95 crores in FY 2025-26, ₹69.55 crores in FY 2024-25, and ₹66.49 crores in FY 2023-24.

Parties Involved: The transaction is between Hindustan Aeronautics Ltd (acquirer) and M/s CAE, Canada (seller). HATSOFF is currently a 50:50 Joint Venture between HAL and CAE, Canada.

Regulatory Approvals: HAL has received administrative approval from MOD-DDP with due concurrence from DIPAM-Ministry of Finance for the acquisition and conversion of HATSOFF into a wholly-owned subsidiary.

Strategic Rationale: The acquisition aims to gain full management control and streamline decision-making by converting HATSOFF from a Joint Venture Company to a 100% Wholly-Owned Subsidiary of HAL. The line of business of HATSOFF (simulator training for Defence and Civil customers) aligns with HAL's main line of business.

Timeline: The acquisition is expected to be completed tentatively within 60 days from the date of signing the Share Transfer Agreement (STA).

Related Party Transaction: Since HATSOFF is a Joint Venture Company wherein HAL holds 50% stake, it falls under the definition of a Related Party under SEBI LODR Regulations. The transaction is not at arm's length.

Business Background: HATSOFF was incorporated on 16th January 2008 and operates in the service industry, providing military and civil helicopter pilot training through operation of simulators. Customers include helicopter pilots from IAF, Army, Navy, Coast Guard, BSF, and civil operators like Pawan Hans Limited and Global Vectra.

Other Key Announcements

No other material announcements were disclosed in this filing.