Bharat Forge Limited has approved an infusion of €39 million (approximately ₹345.58 crore) into its wholly owned subsidiary, Bharat Forge Global Holding GmbH (BFGH), based in Germany. This decision was made during a meeting of the company’s Investment Committee on December 24, 2024.
The funds will be allocated to BFGH as equity capital to support its financial operations, including the repayment and prepayment of outstanding borrowings. BFGH, established in 2003, serves as Bharat Forge’s holding company for overseas investments and oversees subsidiaries in Germany, Sweden, and France.
The investment is part of the utilization plan outlined in Bharat Forge’s Qualified Institutional Placement document dated December 9, 2024. BFGH’s revenue for 2023 was reported at €5.11 million, marking a decrease from €6.28 million in 2022 and €5.23 million in 2021.
Bharat Forge confirmed that the transaction, categorized as a related-party transaction, complies with arm’s length principles. The company retains its 100% ownership in BFGH following this equity infusion. The transaction is expected to be completed by December 31, 2024.