Kalyani Group's Bharat Forge to invest nearly ₹345 crore in European subsidiary

Bharat Forge Limited announced on Tuesday its decision to invest around ₹345 crore (€39 million) into its wholly owned subsidiary, Bharat Forge Global Holding GmbH (BFGH), based in Germany.

In a regulatory filing, the flagship company of Kalyani Group said, "In furtherance of the powers delegated by the Board of the Company, the Investment Committee (Strategic Business) of the Company, at its meeting held on December 24, 2024, approved infusion of funds of € 39.00 million by Bharat Forge Limited into BFGH."

The infusion of funds, raised recently through Qualified Institutional Placement, will support BFGH and its subsidiaries in repaying or prepaying certain outstanding borrowings, as outlined in the company's QIP document.

BFGH, incorporated in 2003, functions as a holding entity for Bharat Forge's overseas investments and reported a turnover of €5.11 million for 2023.

Despite being a related-party transaction, Bharat Forge informed that the investment would be conducted on an arm's length basis.

Amit Kalyani, Subodh Tandale and Dipak Mane of Bharat Forge are on the advisory board of BFGH.

"Other than this, none of the Company’s promoter/ promoter group /group companies have any interest in the proposed investment," Bharat Forge said.

In the board meeting held on November 14, the forging company gave in-principle approval to invest a total of ₹1,122 crore in its three entities - Bharat Forge Global Holding (₹369.5 crore), Bharat Forge America Inc. (₹544.7 crore) and Kalyani Powertrain Limited (₹207.5 crore).

It had a market capitalisation value of ₹63,280 crore as of Tuesday.