Bharat Forge has announced the completion of a major funding transaction involving its subsidiary JS Auto Cast Foundry India Private Limited. The company informed stock exchanges that JS Auto Cast has successfully completed the allotment of shares to PI Opportunities Fund I Scheme II for an aggregate consideration of ₹300 crore.

Transaction Completion Details

The funding transaction, which was initially announced through a Securities Subscription Agreement and Shareholders Agreement dated February 02, 2026, has now been fully executed. JS Auto Cast allotted shares to PI Opportunities Fund I Scheme II, resulting in the investor acquiring a 23% stake in the company on a fully diluted basis.

Share Allotment Structure

The transaction involved a complex share structure with JS Auto Cast allotting one equity share at an issue price of ₹2,104.09 per share, including a premium of ₹2,094.09 per share. Additionally, the company issued 14,25,794 Non-Cumulative Compulsorily Convertible Preference Shares at the same issue price of ₹2,104.09 per share, with a premium of ₹2,004.09 per share.

Subsidiary Status Change

Following the completion of this transaction, JS Auto Cast's status has changed from a step-down wholly owned subsidiary to a step-down subsidiary of Bharat Forge Limited. This change reflects the new ownership structure with PI Opportunities Fund holding a significant minority stake in the automotive components company.

Regulatory Compliance

Bharat Forge has informed both BSE Limited and National Stock Exchange of India Limited about the transaction completion under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company's communication was signed by Company Secretary Tejaswini Chaudhari, ensuring proper regulatory compliance and transparency with stakeholders.

Bharat Forge Limited has made a substantial investment of Rs. 1600.35 million in its German subsidiary, reinforcing its international operations strategy. The Pune-based forging company announced the capital infusion into Bharat Forge Global Holding GmbH (BFGH) through a regulatory filing dated March 11, 2026.

Investment Details

The investment represents a significant equity capital contribution to strengthen the company's overseas holding structure. BFGH, incorporated on December 15, 2003, serves as the primary vehicle for Bharat Forge's international investments and operations.

Subsidiary Performance

Bharat Forge Global Holding GmbH has demonstrated consistent operational performance over recent years. The German-based holding company manages manufacturing subsidiaries across multiple European countries including Germany, Sweden, and France.

Related Party Transaction

The investment qualifies as a related party transaction conducted on an arm's length basis. The subsidiary's advisory board includes key Bharat Forge executives:

• Mr. Amit Kalyani
• Mr. Subodh Tandale
• Mr. Dipak Mane

The company confirmed that apart from these board positions, no other promoter, promoter group, or group companies have any interest in the proposed investment.

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company obtained requisite regulatory approvals for the transaction and referenced previous intimations dated November 14, 2022, and August 8, 2024, regarding investments in foreign subsidiaries.

Strategic Significance

This capital infusion supports Bharat Forge's continued focus on strengthening its global manufacturing footprint through its established European operations. BFGH's role as a holding company enables the management of overseas investments and facilitates the company's international expansion strategy across key European markets.