Bharat Forge, an industrial engineering company, has approved the transfer of specific defence business assets to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL), as part of an internal restructuring process.
KSSL, incorporated on December 20, 2010, is engaged in the development and deployment of defence products and components. The company reported revenue from operations of INR 12.47 billion for FY2025 and had a net worth of INR 2.32 billion as of March 31, 2025.
The business transfer to KSSL will be conducted through a definitive agreement on an itemized sale basis at fair value, as determined by an independent valuer. As consideration, KSSL will issue Optionally Convertible Redeemable Preference Shares (OCRPs) not exceeding INR 5 billion. The transaction qualifies as a Related Party Transaction under SEBI’s Listing Obligations and Disclosure Requirements (LODR), given KSSL’s status as a wholly owned subsidiary of Bharat Forge. The restructuring aims to facilitate focused management of the defence segment and unlock long-term value, with no impact on consolidated financials.
Separately, the Board has approved the acquisition of 100 percent equity shares of AAM India Manufacturing Corporation Private Limited in one or more tranches for a total consideration not exceeding INR 7.7 billion. AAM India manufactures axles for light, medium, and heavy commercial vehicles and operates within India. The updated valuation reflects an increase from the originally estimated INR 5.45 billion, mainly due to higher cash balances available in AAM India’s books as of the closing date, July 1, 2025.
The acquisition of AAM India is expected to be completed within 45 days.
Bharat Forge, part of the Kalyani Group, operates across the forging, automotive, energy, and defence sectors, with a global manufacturing footprint in India, Europe, and North America.