Zen Technologies shares hit 5% upper circuit: Here is why the defence stock rallied today

“The Board of Directors has unanimously approved the acquisition, which will be executed through a combination of share purchases from existing shareholders of TISA and the acquisition of compulsorily convertible debentures (CCDs) from existing holders issued by TISA,” Zen Technologies had said in a regulatory filing.

The company did not reveal financial details of the deal.

The defence firm acquired 206,518 equity shares of ₹10 each of TISA Aerospace Private Limited (TISA) from its existing shareholder, representing 54.67% of the total equity paid-up share capital of TISA. Zen also acquired 4 lakh numbers of 6% Compulsory Convertible Debentures (CCDs) of face value of ₹100 each from an existing CCD holder, issued by TISA.

Upon completion of the proposed transaction, TISA will become a subsidiary of the company.

Following this, Zen Technologies shares surged 5% to hit an upper circuit of ₹1,994.60 apiece on the National Stock Exchange (NSE).

Commenting on the acquisition, Ashok Atluri, Chairman and Managing Director of Zen Technologies, said, “This acquisition is a decisive step towards strengthening Zen’s position in the rapidly evolving defence drone sector. TISA’s expertise in loitering munitions provides us with immediate access to advanced technologies and platforms that align with the emerging operational requirements of the Armed Forces.”

“TISA has achieved significant R&D milestones, including the successful execution of a project for DRDO with critical design assistance from IIT Madras. By integrating these capabilities with our existing strengths in anti-drone systems and propulsion technologies, we are building a broader and more future-ready defence portfolio,” Atluri further said.

The company further explained that the investment represents a focused entry into the high-growth domain of loitering munitions and the ecosystem around it—a rapidly evolving category of precision-guided weaponry that has demonstrated significant operational relevance in modern warfare.

Founded in December 2020, TISA Aerospace is dedicated to the design, development, and manufacture of advanced loitering munitions and UAVs tailored for defence applications. The company has successfully delivered loitering munitions meeting DRDO specifications and is developing new variants for the Indian Army.