Hindustan Aeronautics Ltd (HAL), the state-owned aerospace and defence company, has entered into an agreement to acquire the remaining 50% stake in Hatsoff Helicopter Training Pvt Ltd from CAE, Canada, for nil consideration.
The transaction involves the acquisition of 3.84 crore equity shares held by CAE. Following the transfer, Hatsoff will become a 100% wholly owned subsidiary of HAL.
Acquisition to strengthen control
Hatsoff currently operates as a 50:50 joint venture between HAL and CAE and provides military and civil helicopter pilot training through simulator-based programmes. HAL’s joint venture listing identifies Hatsoff as a helicopter pilot training services provider in India.
The acquisition will give HAL full management control and is aimed at streamlining decision-making by converting Hatsoff from a joint venture into a wholly owned subsidiary.
Training business aligns with HAL
Hatsoff’s business is aligned with HAL’s aerospace and defence operations. The company operates helicopter simulators and provides training to military and civil helicopter pilots.
Its customers include pilots from the Indian Air Force, Army, Navy, Coast Guard and BSF, as well as pilots from civil helicopter operators such as Pawan Hans Ltd and Global Vectra.
Business has established training base
Hatsoff was established by HAL and CAE to provide simulation-based helicopter training and began operations with a full-mission helicopter simulator in Bengaluru. Its simulator capabilities include training for helicopter platforms used by the Indian armed forces.
The company has also secured Level D certification for its helicopter simulator capabilities, the highest qualification for flight simulators, and continues to provide ground, flying and operational training.
Government approval received
HAL has received administrative approval from the Ministry of Defence’s Department of Defence Production, with the concurrence of the Department of Investment and Public Asset Management under the Ministry of Finance, for acquiring CAE’s full stake in Hatsoff.
Hatsoff falls under the definition of a related party under the SEBI Listing Obligations and Disclosure Requirements Regulations. HAL said the transaction is not at arm’s length.
Transaction expected within 60 days
The acquisition is expected to be completed tentatively within 60 days from the date of signing the Share Transfer Agreement.
Hatsoff reported turnover of ₹80.95 crore in FY26, according to HAL’s disclosure. Once the transaction is completed, the company will cease to be a joint venture and operate as a wholly owned subsidiary of HAL.