Bharat Forge Limited has announced the successful completion of its Qualified Institutional Placement (QIP), raising ₹1,650 crores. The QIP concluded on December 9, 2024, and involved the issuance of shares at ₹1,320 per share, slightly below the regulatory floor price of ₹1,323.54 per share.
According to the press release issued by the company, the offering attracted significant interest from domestic and international institutional investors, with demand exceeding the issue size by more than ten times. Over 90% of the allocation was made to long-term funds and insurance companies.
The company plans to use the proceeds to repay existing debt and support its previously announced inorganic growth initiatives.
Kotak Mahindra Capital Company Limited and Morgan Stanley India Company Private Limited served as the book-running lead managers for the QIP. Legal counsel was provided by Khaitan & Co for Bharat Forge, and by Shardul Amarchand Mangaldas & Co. and Freshfields Bruckhaus Deringer for the lead managers.
Bharat Forge, headquartered in Pune, specializes in high-performance safety-critical components for sectors including automotive, defense, and aerospace.