Bharat Forge Limited has announced an additional investment of ₹82 crore in its wholly-owned subsidiary, Kalyani Powertrain Limited (KPTL), through a rights issue. The investment, approved by the company’s Investment Committee, is aimed at supporting KPTL’s electric vehicle (EV) and e-mobility initiatives.
Key Details of the Investment:
- Total Investment: ₹82 crore (₹820 million)
- Shares Acquired: 8.2 crore equity shares with a face value of ₹10 each.
- Purpose of Investment:
- ₹76.5 crore will be used for debt repayment and prepayment of outstanding borrowings.
- ₹5.5 crore is allocated for capital and operational expenditures.
KPTL’s Recent Performance and Background:
KPTL, established in 2020 and headquartered in Pune, is a key player in Bharat Forge’s strategy to expand in the EV sector. The company’s revenue has grown significantly over the past three years:
- FY 2023-24: ₹64.9 crore
- FY 2022-23: ₹16.28 crore
- FY 2021-22: Nil
KPTL focuses on developing and supplying components for electric vehicles and other e-mobility solutions, making it a core part of Bharat Forge’s diversification efforts.
No Regulatory Approvals Required:
The investment will be completed by February 10, 2025, and no governmental or regulatory approvals are needed.
Strategic Importance:
This investment aligns with Bharat Forge’s larger goal of capitalizing on India’s growing EV market. With the new infusion of funds, KPTL will be better positioned to expand its manufacturing capabilities and innovate within the e-mobility sector.
Continuing 100% Ownership:
Bharat Forge will continue holding 100% equity in KPTL following the investment, reinforcing its long-term commitment to developing sustainable mobility solutions.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research or consult a financial advisor before making any investment decisions.
