The proposed transaction involving Novavaayu Aerospace comes as Mahindra and Embraer advance their partnership to position the C-390 Millennium military transport aircraft for the Indian Air Force’s medium transport aircraft requirement.
Mahindra & Mahindra (M&M) is set to sell a 51% equity stake in Novavaayu Aerospace Ltd to Brazilian aircraft manufacturer Embraer for approximately ₹5.1 lakhs, marking a significant development in the companies’ aerospace partnership.
According to a regulatory filing by M&M, the agreement was signed on 9 October 2026, with the transaction expected to be completed on or before 1 December 2026. Novavaayu Aerospace, based in Mumbai, was incorporated on 29 July 2026 as a wholly owned subsidiary of Mahindra Defence Systems Ltd (MDSL).
MDSL, which holds Novavaayu Aerospace, is part of the Mahindra Group. Following the proposed transaction, Embraer will hold a majority stake of 51% in the aerospace subsidiary, while Mahindra’s remaining ownership will be subject to the final transaction structure.
Partnership linked to C-390 Millennium opportunity
The proposed stake sale comes as Mahindra and Embraer work together to position the C-390 Millennium military transport aircraft for the Indian Air Force’s proposed medium transport aircraft requirement.
The C-390 Millennium is Embraer’s military transport platform. The companies’ partnership is intended to support their efforts in the Indian market, where the potential programme could create opportunities for industrial collaboration and broader aerospace capability development.
The proposed ownership change at Novavaayu Aerospace represents an important corporate development within this partnership. However, the transaction announcement, by itself, does not establish that the C-390 has been selected by the Indian Air Force or that a production or final-assembly programme has been awarded.
Transaction timeline and corporate structure
M&M’s regulatory disclosure states that the transaction does not qualify as a related-party transaction. The filing also marks the disclosure requirements relating to slump sales and amalgamations or mergers as not applicable.
The proposed acquisition would give Embraer a majority ownership position in Novavaayu Aerospace, subject to completion of the transaction. The regulatory filing identifies 1 December 2026 as the expected completion deadline.
Further details on the future operating structure of the subsidiary and the specific industrial activities to be undertaken through it were not provided in the supplied announcement.
