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Bharat Forge transfers defence business worth ₹500 crore to Kalyani Strategic SystemsKalyani Strategic Systems will issue Optionally Convertible Redeemable Preference Shares (OCRPs) of up to ₹500 crore as consideration. Shares of Bharat Forge Ltd ended at ₹1,308.00, down by ₹1.20, or 0.092%, on the BSE.By Jomy Jos Pullokaran   June 30, 2025, 10:12:31 PM IST (Published)2 Min ReadGlobal metal forging company Bharat Forge Limited (BFL), on Monday (June 30), said its board has approved two key strategic actions — an internal restructuring of its defence business and an upward revision in the acquisition cost of AAM India Manufacturing Corporation Private Limited.

As part of the internal restructuring, Bharat Forge will transfer identified assets and related obligations of its defence business to its wholly owned subsidiary, Kalyani Strategic Systems Ltd (KSSL), via an itemised sale. The transaction, aimed at streamlining operations and enhancing focus on defence, will be executed at fair value as determined by an independent valuer.

Kalyani Strategic Systems will issue Optionally Convertible Redeemable Preference Shares (OCRPs) of up to ₹500 crore as consideration. The restructuring is expected to be completed within 45 days and will not impact Bharat Forge’s consolidated financials.

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Kalyani Strategic Systems, engaged in defence product development and deployment, reported a turnover of ₹1,247 crore and a net worth of ₹232 crore for FY25. Bharat Forge will continue to retain 100% ownership in the subsidiary post-transfer.

In a separate development, the board also approved an increase in the acquisition cost of AAM India to a maximum of ₹770 crore, up from the initially estimated ₹544.5 crore. The revision reflects higher cash balances in AAM India as of the expected closing date, July 1, 2025.

The transaction, announced earlier on October 17, 2024, involves acquiring 100% equity in AAM India, a key supplier of axles for light, medium, and heavy commercial vehicles in India.

Shares of Bharat Forge Ltd ended at ₹1,308.00, down by ₹1.20, or 0.092%, on the BSE.

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