The defence business to TATA advanced systems completes the sale to TATA powers

Strategic Engineering Division (SED) may be a non-core defence electronics division of the corporate , engaged in business of indigenous design, development, production, integration, supply and life cycle support of mission critical defence systems.

Tata Power on Monday said it’s completed the sale of its defence business to Tata Advanced Systems. Tata Advanced Systems may be a wholly-owned subsidiary of Tata Sons.

“The sale was completed as per a Scheme of Arrangement, which was approved by the National Company Law Tribunal at Mumbai and Hyderabad in December 2019 and March 2020, respectively,” Tata Power said during a regulatory filing.

The company said it’s expected to receive an enterprise value of Rs 1,076 crore as an upfront payment.

Balance consideration is subject to completion of achieving certain milestones laid out in the agreements, the corporate added.

Tata Power said the sale of defence business is a component of the company’s ongoing strategy to monetise its non-core assets and reduce overall leverage.

“The sale proceeds will help the corporate to scale back leverage and increase focus within the core business areas like renewable generation, distribution and new service-led businesses which can bring greater value for our shareholders,” Praveer Sinha, CEO and director , Tata Power said.

Strategic Engineering Division (SED) may be a non-core defence electronics division of the corporate , engaged in business of indigenous design, development, production, integration, supply and life cycle support of mission critical defence systems.

The key products include manufacturing and assembling missile launchers, EW , night-sight systems and gun systems.

SED has three dedicated manufacturing units, as followings, Bangalore Electronic City, Vemagal in Karnataka (under construction) and a SEZ near Bengaluru (under construction).

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