Bharat Forge to Invest ₹105.45 Crore in Kalyani Powertrain Ltd

On August 22, 2024, Bharat Forge Limited announced that its Board, specifically the ‘Investment Committee – Strategic Business,’ has approved an additional investment in its wholly-owned subsidiary, Kalyani Powertrain Limited (KPTL). This strategic move underscores Bharat Forge’s commitment to advancing its electric vehicle (EV) and e-mobility initiatives.

KPTL, a public limited company incorporated on September 26, 2020, and based in Pune, India, focuses on the development and implementation of EV and e-mobility solutions. For the fiscal year 2023-24, KPTL reported a turnover of ₹649 million, a significant increase from ₹162.84 million in FY 2022-23. This growth highlights KPTL’s expanding role in the rapidly evolving e-mobility sector.

The additional investment by Bharat Forge in KPTL is set to be completed on or before September 30, 2024. The Company plans to subscribe to 10,545,000 equity shares of KPTL, with a face value of ₹10 each, totalling an aggregate investment of up to ₹105.45 crore. This investment aims to bolster KPTL’s capabilities and consolidate all of Bharat Forge’s e-mobility initiatives under KPTL, further enhancing its strategic position in the EV market.

Bharat Forge will continue to hold 100% of KPTL’s shareholding following this investment. The move reflects Bharat Forge’s strategic focus on strengthening its foothold in the e-mobility sector, ensuring that KPTL remains at the forefront of innovation and development in this crucial industry. With this additional funding, KPTL is well-positioned to expand its operations and contribute significantly to Bharat Forge’s long-term growth and success in the electric vehicle and e-mobility space.

In Q1 FY 2025, Bharat Forge’s revenue increased by 6% YoY to ₹41,061 million, while EBITDA rose by 23% YoY to ₹7,592 million.

About Bharat Forge Ltd

Bharat Forge Ltd is involved in the manufacturing and selling of forged and machined Compoundant for the auto and industry sector.

On August 23, 2024, the share price of Bharat Forge opened at ₹1,636.50, touching the day’s low at ₹1,601.90, as of 9:50 AM on the NSE.

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