Bharat Forge Limited has informed the Exchange about Other Restructuring
BHARATFORG · price
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Awaiting price reaction for this filing.
On June 30, 2025, Bharat Forge's board approved two key decisions. First, the company will transfer identified assets and obligations of its Defence business to its wholly owned subsidiary Kalyani Strategic Systems Limited (KSSL) on an itemized sale basis at fair value, with KSSL issuing Optionally Convertible Redeemable Preference Shares (OCRPs) of up to Rs. 5,000 million as consideration; KSSL reported FY25 revenue of Rs. 12,470 million. Second, the board approved a revised deal consideration of up to Rs. 7,700 million (up from Rs. 5,445 million estimated at the October 2024 SPA signing) for acquiring 100% of AAM India Manufacturing Corporation, a leading axle maker for commercial vehicles. The increase is mainly due to higher cash balances at AAM India, with closing slated for July 1, 2025. Bharat Forge will continue to hold 100% of KSSL after the restructuring, and the transfer will not impact consolidated financials.
The internal restructuring creates a focused vehicle for the high-growth defence business within the group, potentially enabling better value discovery, while the higher AAM India price tag modestly raises the cash outflow but also brings more cash on AAM India's books that will be available post-completion.