Zen Technologies Limited has acquired a majority 54.7% stake in TISA Aerospace for ₹6.6 crore, marking a strategic expansion into loitering munitions and UAV technology. The Hyderabad-based defense technology company's shares surged 5% to ₹1995.30 following the announcement. This acquisition aligns with India's self-reliance initiatives in defense capabilities, particularly in the rapidly evolving drone sector.
The acquisition involves purchasing 2,06,518 equity shares from existing TISA Aerospace shareholders, along with 4 lakh 6% compulsory convertible debentures. TISA Aerospace, established in December 2020 by Raghu Vamsi Group's Vamsi Vikas Ganesula and Kiran Kumar Vagga, specializes in the indigenous development of loitering munitions and unmanned aerial vehicles.
Market investors responded positively, with Zen Technologies shares hitting the 5% upper circuit limit on the Bombay Stock Exchange, rising from the previous close of ₹1900.30 per share.
Chairman Ashok Atluri emphasized that TISA's expertise provides immediate access to advanced technologies meeting armed forces' operational requirements. The company has achieved significant research milestones, including successful DRDO project execution with design assistance from IIT Madras.
Zen Technologies plans to integrate these capabilities with existing strengths in anti-drone systems and propulsion technologies. This integration strategy aims to create a comprehensive defense portfolio, enabling faster scaling and enhanced competitiveness in domestic and global markets through cross-platform product integration.
The acquisition positions Zen Technologies strategically within India's defense self-reliance framework, particularly addressing urgent needs in drone and loitering munitions capabilities. TISA Aerospace has successfully delivered loitering munitions meeting DRDO specifications and continues developing new variants for the Indian Army.
The move comes amid increased focus on defense drone technology following Operation Sindoor, creating opportunities for expanded market presence and technological advancement in precision-guided weapons systems.
Zen Technologies' acquisition of TISA Aerospace represents a calculated expansion into high-growth defense drone technology. The ₹6.6 crore investment provides access to advanced UAV and loitering munitions capabilities while supporting India's defense self-reliance goals. With shares responding positively and integration opportunities abundant, this strategic move positions the company for enhanced competitiveness in evolving defense markets.