Dassault Aviation is set to increase its 2 per cent stake in Dassault Reliance Aerospace (DRAL), a joint venture between French aerospace giant Dassault Aviation and Anil Ambani-led Reliance Infrastructure. Dassault Aviation currently holds a 49 per cent stake in DRAL and RAL holds a 51 per cent stake in DRAL. After the transaction Dassault Aviation will increase to 51 per cent, making DRAL a subsidiary of Dassault Aviation, and Reliance Infra will become an associate company with Reliance Aerospace (RAL) holding a 49 per cent stake.
The deal is expected to be completed by November 1.The move is aimed at strengthening guarantees, warranties, and service commitments for customers in India and worldwide.
Reliance Infrastructure to receive Rs 176 crore for 2% stake
During the last financial year ending March 31 DRAL contributed Rs 69.93 crore to RAL’s consolidated turnover, accounting for 0.23 per cent of total revenue. Its net worth stood at Rs 47.13 crore, representing 0.33 per cent of the consolidated net worth. The company will receive approximately Rs 175.96 crore for the 2 per cent stake, based on an independent valuation.
Dassault Aviation raises stake in DRAL
According to the white paper shared with Financialexpress.com, The stake increase follows Dassault Aviation’s decision to designate DRAL as a Centre of Excellence (CoE) for its Falcon aircraft. The company plans to set up its first Final Assembly Line (FAL) for Falcon jets outside France at DRAL’s facility in Mihan, Nagpur, Maharashtra.
The Falcon series is among the most successful business executive jets globally. Dassault Aviation currently has a backlog of 75 aircraft as of June 30, highlighting strong demand.
Dassault Aviation has a market capitalization of over Rs 2 lakh crore and holds cash reserves exceeding Rs 80,000 crore, underlining its robust financial position.