Bharat Forge to house defense-related investments under one entity. Details here
1 min read 23 Feb 2023, 07:01 PM ISTCurrently, Bharat Forge holds 1,36,500 equity shares having a face value of ₹10 each, aggregating to around 37.14 % of total paid-up capital in Aeron.
PremiumKalyani Group-backed forging company, Bharat Forge on Thursday received approval for housing all its defense-related investments under one entity. To do so, the company will transfer the stake in Aeron Systems (Aeron) to Kalyani Strategic Systems (KSSL). Both are wholly-owned subsidiaries of Bharat Forge.
In its regulatory filing on Thursday, Bharat Forge said, "the Company has decided to house all its defense-related investments under KSSL, a wholly-owned subsidiary of the Company, for a better strategic alignment."
It added, "the company has thus approved the transfer of the Company’s stake in Aeron to KSSL in consideration of subscription of equity shares of the KSSL by the Company."
Currently, Bharat Forge holds 1,36,500 equity shares having a face value of ₹10 each, aggregating to around 37.14 % of total paid-up capital in Aeron.
These equity shares will be transferred to KSSL.
Further, KSSL, as a consideration for acquiring the said stake at fair value, will issue and allot 1,37,18,250 equity shares having a face value of ₹10 each at par to Bharat Forge.
Bharat Forge said, there is no benefit to the promoter/promoter group/group companies from the proposed internal restructuring. That is because, both KSSL and Aeron are wholly-owned subsidiaries and associates of the company respectively.
Subsequently, post the transfer of equity shares, Aeron will become an associate of the KSSL.
Also, Bharat Forge mentioned that there will be no change in the shareholding pattern of any of the entities involved. Except that Bharat Forge will have NIL shares in Aeron post the transaction, while KSSL will hold 37.14%.
On BSE, Bharat Forge's share price closed at ₹829.90 apiece down by 1.40%. The company's market cap is nearly ₹38,632 crore.
