NEW DELHI: French aerospace and defence major Dassault Aviation will increase its shareholding in Dassault Reliance Aerospace Limited (DRAL) from 49% to 51%, making the India-headquartered joint venture a majority-owned subsidiary of the Paris-headquartered company.
Upon completion of the transaction, DRAL will cease to be a 51% subsidiary of Reliance Infrastructure and become an associate company with 49% shareholding. Reliance Infrastructure said in an exchange filing that it will receive 175.96 crore from the stake sale based on an independent valuation.
The expected date of completion of the sale/disposal is November 01, 2025.
With the increase in stake, Dassault Aviation will ensure guarantees, warranties and service commitments for Falcon aircraft customers in India and worldwide. Dassault Aviation, which has a market capitalisation of over Rs 2 lakh crore and cash reserves topping Rs 80,000 crore, has been expanding its footprint in India since securing the Rafale fighter jet deal with the government in 2016.
The French manufacturer recently designated DRAL as a Centre of Excellence (CoE) for the Falcon business jet programme. In line with that decision, the company announced that it will set up its first Final Assembly Line (FAL) for Falcon aircraft outside France at the MIHAN special economic zone in Nagpur, Maharashtra.
The Falcon series, which competes with the likes of Bombardier and Gulfstream in the premium executive jet category, is among the company’s most successful platforms. As of June 30, 2025, Dassault Aviation reported an order backlog of 75 Falcon aircraft, providing strong visibility for the next couple of years.
DRAL was originally set up as a joint venture between Dassault Aviation and Reliance Aerostructure Limited, a wholly owned subsidiary of Reliance Infrastructure Ltd. Reliance will continue to remain a partner, but Dassault’s majority control marks a shift in operational leadership at a time when the French company is sharpening its India strategy.
The transfer of 2% equity also comes at a time when Reliance Infrastructure’s promoter Anil Ambani is being investigated by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) in connection with an alleged bank fraud.
Recently public sector lender Bank of Baroda classified the loan accounts of Reliance Communications Limited (RCOM) and its erstwhile promoter and director Anil Ambani, as “fraud”. Ambani strongly denied allegations linked to Bank of Baroda’s move to classify the loan account as “fraud”.