Bharat Forge Limited announced that its wholly-owned subsidiary, BF Industrial Solutions Limited (BFISL), has entered into Securities Subscription Agreement and Shareholders Agreement with RS Aerostructures Limited on April 17, 2026. Under the terms of these definitive transaction agreements, BFISL will subscribe to equity shares resulting in the acquisition of a 90% stake in RS Aerostructures on a fully diluted basis.

The acquisition will be executed through cash consideration not exceeding Rs. 36 Million. RS Aerostructures Limited is an entity situated in Bangalore and engaged in the aerospace structural assembly business. The company was incorporated on January 14, 2026, and currently has no revenue with a net worth of Rs. 7,000 only.

Transaction Details

Strategic Rationale

RS Aerostructures is not a related party of Bharat Forge Limited, and the acquisition will be conducted at fair value as assessed by an independent valuer. None of the company's promoter, promoter group, or group companies have any interest in the proposed investments. The strategic acquisition will enable Bharat Forge to expand its aerospace product portfolio, customer base, and manufacturing presence in South India by leveraging RS Aerostructures' specialized expertise in assembling and maintaining aerostructures and components for aircraft and other aerospace vehicles.

Post completion of the acquisition, RS Aerostructures will become a subsidiary of BFISL and a step-down subsidiary of Bharat Forge Limited. The company specializes in riveting structures, assemblies, and sub-assemblies for aerospace usage, aligning with Bharat Forge's objective to drive aerospace business initiatives.

Bharat Forge 's board has approved a significant restructuring initiative for its German subsidiary BF CDP GmbH, marking a major strategic shift in the company's European operations. The board meeting held on April 9, 2026, reviewed and evaluated a comprehensive proposal for the phased restructuring of the steel forging operations at the wholly owned subsidiary located in Ennepetal, Germany.

Board Meeting Outcome

The restructuring proposal may include an orderly wind-down and solvent liquidation of BF CDP, in accordance with applicable German laws. This strategic decision is being considered in light of the market challenges and associated cost disadvantages faced by BF CDP in Germany. The board meeting commenced at 12:30 P.M. and concluded at 12:50 P.M.

Financial Support Framework

To facilitate the proposed restructuring, the board has approved a substantial financing arrangement of up to EUR 30 million. This financial commitment demonstrates the company's dedication to ensuring a structured and responsible approach to the potential closure of its German operations. The financing will support various aspects of the restructuring process, including operational wind-down costs and liquidation procedures.

Governance and Implementation

The board has delegated necessary authorities to its sub-committee to oversee further evaluation and implementation of the restructuring plan. This governance structure ensures proper oversight and management of the complex restructuring process. The company has committed to communicating subsequent developments to the stock exchanges in accordance with SEBI Listing Regulations.

Strategic Implications

This restructuring decision represents a significant development in Bharat Forge's international operations strategy. The potential closure of BF CDP GmbH indicates the company's focus on optimizing its global footprint and addressing underperforming assets in challenging market conditions. The phased approach suggests careful consideration of all stakeholders involved in the process, including regulatory compliance under German laws.