Embraer to acquire 51% equity stake in Novavayu Aerospace Ltd, a step-down subsidiary

Embraer S.A., Brazil will acquire 51% equity stake in Novavayu Aerospace Limited (NAL), a step-down wholly owned subsidiary.

Sat 10 Oct 2026

Equity Stake Sold

51% equity stake in Novavayu Aerospace Limited (NAL)

Aggregate Consideration

approximately Rs. 5,10,000

Expected Completion Date

on or before 1st December 2026

What has been informed

The company has informed that it received an intimation on 9th October 2026 at 10:43 p.m. (IST) regarding the execution of an Investment Agreement of even date, pursuant to which Embraer S.A., Brazil will acquire a 51% equity stake in Novavayu Aerospace Limited (NAL), a step-down wholly owned subsidiary of the Company.

Change in group structure

• Consequent to the acquisition of the 51% stake by Embraer, NAL will cease to be a wholly owned subsidiary.
• NAL will become an associate of MDL, a step-down wholly owned subsidiary of the Company.

Money involved

• MDL will receive aggregate consideration of approximately Rs. 5,10,000 for the sale of its 51% equity stake in NAL to Embraer S.A.

About NAL

NAL was incorporated on 29th July 2026 as a wholly owned subsidiary of Mahindra Defence Systems Limited (MDL), which is a wholly owned subsidiary of Mahindra Advanced Technologies Limited (MATL), which in turn is a wholly owned subsidiary of the Company.

• NAL was not in existence during the financial year ended 31st March 2026.
• Accordingly, NAL did not contribute any turnover, revenue, income, net worth or profits to the Company's consolidated financial statements for that financial year.
• As on the date of this disclosure, NAL has not generated any revenue or income.

Dates to note

• Date on which the agreement for sale was entered into: 9th October 2026
• Expected date of completion of sale/disposal: on or before 1st December 2026

The buyer

Embraer S.A. is a company incorporated under the laws of the Federative Republic of Brazil, with its registered office at Avenida Brigadeiro Faria Lima, 2170, Putim, Sao Jose dos Campos, Sao Paulo, 12227-901, Brazil.

• The buyer is not related to the Promoter/Promoter Group/Group Companies of the Company.
• The proposed transaction for sale of shares does not fall within the ambit of related party transactions.

Other disclosures in the annexure

• On whether the sale, lease or disposal of the undertaking is outside a Scheme of Arrangement, the disclosure is marked Not Applicable.
• On indicative disclosures for a slump sale, the disclosure is marked Not Applicable.

How to read this

This is the sale of a 51% equity stake by MDL in a step-down subsidiary that was incorporated on 29th July 2026 and had not generated any revenue or income as on the date of the disclosure. The aggregate consideration stated is approximately Rs. 5,10,000. After the transaction, NAL moves from being a wholly owned subsidiary to an associate of MDL, and the buyer is not part of the Promoter/Promoter Group. The completion of the transaction is expected on or before 1st December 2026.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.