NEW DELHI: Tata Power said today that it has inked the implementation agreement with Tata Advanced Systems Ltd (TASL) to sell its Strategic Engineering Division (SED) which is engaged in the defence business.
It said both the companies will now initiate the process of seeking markets regulator SEBl's approval, followed by submission of draft Scheme to National Company Law Tribunal (NCLT).
"In connection with sale of our SED to TASL. The Company has executed Implementation Agreement with TASL on April 25, 2018," Tata Power said in a BSE filing today.
Tata Power had announced last month that its board has given nod for sale of its defence business to the TASL for Rs 2,230 crore.
The move is part of the company's plan to monetise its non-core assets and improve the balance sheet, it had said.
The SED is 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, electronic warfare, night vision systems and gun systems.