HAL to take full ownership of HATSOFF, buying out CAE Canada at nil consideration

Hindustan Aeronautics Limited told the exchanges on 2 October 2026 that it has signed an agreement to acquire the 50% stake held by CAE, Canada in HATSOFF Helicopter Training Pvt Ltd. HAL already owns the other half; once the shares transfer, HATSOFF becomes a 100% wholly-owned subsidiary. The filing states the acquisition is at nil consideration — no cash changes hands and no shares are swapped.

HATSOFF, incorporated in January 2008, has run as a 50:50 joint venture between HAL and CAE, operating helicopter flight simulators for military and civil pilot training. Its customers, per the filing, include pilots from the IAF, Army, Navy, Coast Guard and BSF, along with civil operators such as Pawan Hans and Global Vectra.

HAL frames the move as gaining full management control and streamlining decision-making by folding the venture into itself. The filing notes HATSOFF's line of business — simulator-based helicopter pilot training for defence and civil customers — aligns with HAL's main line of business.

HAL says it has received administrative approval from MOD-DDP, with concurrence from DIPAM (Ministry of Finance), to acquire CAE's full stake and convert the JV into a wholly-owned subsidiary. The transaction is expected to complete tentatively within 60 days of signing the Share Transfer Agreement.

Because HAL already holds 50% of HATSOFF, the filing states the acquisition falls under the definition of a related-party transaction under SEBI LODR, and that it is not at arm's length. The structure is a nil-consideration transfer of CAE's shares to HAL rather than a priced buyout.