Bharat Forge Limited addressed material price movement in its equity shares through an official clarification to stock exchanges on February 4, 2026. The company responded to widespread media reports regarding its participation in India's Advanced Medium Combat Aircraft programme.

Stock Exchange Notification

The company filed its clarification under Regulation 30(11) of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, with both BSE Limited and National Stock Exchange of India Limited. Bharat Forge confirmed that while material price movement was observed on February 4, 2026, there is no undisclosed price-sensitive information or impending corporate action that could influence the stock's price or volume behaviour.

AMCA Programme Participation Details

The clarification addressed media reports, particularly an Economic Times article titled "AMCA fighter jet programme: Tata, L&T, Bharat Forge in fighter jet race; HAL out." The company provided specific details about its involvement in the defence programme:

Company's Official Position

Bharat Forge confirmed that its participation in the AMCA programme bid represents factually correct information. However, the company clarified that it has not received any additional communication from the Aeronautical Development Agency or the Ministry of Defence beyond the original collaboration agreement.

The company emphasized that the equity share price movement is purely market-driven and attributed to prevailing market conditions rather than any specific corporate developments or undisclosed information.

Regulatory Compliance

The clarification was signed by Tejaswini Chaudhari, Company Secretary and Compliance Officer, ensuring full transparency with stakeholders and preventing potential misinformation regarding the company's defence sector involvement. The company had previously informed exchanges about the tripartite MoU on September 26, 2025, maintaining consistent disclosure practices.

Bharat Forge has announced that its wholly-owned step-down subsidiary, JS Auto Cast Foundry India Private Limited (JSA), has successfully secured ₹300 crores in equity investment from PI Opportunities Fund I Scheme II, an affiliate of Premji Invest. The transaction, disclosed through a comprehensive regulatory filing under Regulation 30 of SEBI Listing Regulations on February 2, 2026, marks a significant milestone in the company's growth strategy.

Investment Structure and Regulatory Details

The investment involves a primary equity infusion into JS Auto Cast, with the investor acquiring a substantial ownership position in the casting specialist. The Securities Subscription Agreement and Shareholders Agreement were executed on February 2, 2026, with completion expected by March 31, 2026, subject to closing conditions stipulated in the definitive transaction agreements.

JS Auto Cast Financial Performance

JS Auto Cast has demonstrated strong financial performance, contributing significantly to Bharat Forge's consolidated operations. The subsidiary's robust metrics showcase its growth trajectory and market position as detailed in the regulatory disclosure.

Transaction Terms and Regulatory Compliance

The comprehensive regulatory filing reveals detailed transaction terms and compliance requirements. The agreement includes customary provisions such as non-compete clauses restricting ferrous casting business in India except through JS Auto, transfer restrictions on BFISL shares, structured exit mechanisms, and standard indemnity provisions. The company has confirmed that the investor does not belong to the promoter or group companies, ensuring an arm's length transaction that does not fall within related party transaction requirements.

Strategic Growth Plans and Management Commentary

The capital raised will be strategically deployed across multiple growth initiatives. JS Auto Cast plans to accelerate its expansion by increasing casting capacity and investing in medium casting capabilities. Additionally, the funds will support industry consolidation through targeted acquisitions, positioning the company for enhanced market presence.

Amit Kalyani, Vice Chairman & Joint Managing Director of Bharat Forge, highlighted the subsidiary's impressive performance since its acquisition. He noted that since 2022, JS Auto Cast has delivered excellent financial results with topline, exports, and profitability growing at a CAGR of 17%, 24%, and 25% respectively, while simultaneously enhancing its product mix and customer base.

Investor Profile and Fund Details

PI Opportunities Fund I Scheme II is an Alternative Investment Fund managed by PI Investment Advisory LLP, an affiliate of Premji Invest Group. The fund makes substantial investments in growing Indian companies, with a focus on technology, finance, and consumer sectors, funding the Azim Premji Foundation. The regulatory filing confirms the investor's credentials and investment mandate, reinforcing the strategic nature of this partnership for JS Auto Cast's future growth trajectory.