Acquisitions30 Jun 2025, 08:32 pm
Bharat Forge Approves Internal Restructuring & Acquisition of AAM India for Rs. 7,700 Million
AI Summary
Bharat Forge Ltd. announced that its Board of Directors approved an internal restructuring exercise for the transition of Defence Business to Kalyani Strategic Systems Limited (KSSL), its wholly owned subsidiary. The Board also approved the acquisition of AAM India Manufacturing Corporation Private Limited (AAM India) for a deal consideration not exceeding Rs. 7,700 million. The restructuring will enable KSSL to manage defence business with dedicated and focused management, while the acquisition will strengthen Bharat Forge's presence in the commercial vehicle axles market.
Key Highlights
- Bharat Forge to transfer identified assets and obligations to KSSL for defence business transition.
- The transaction will be undertaken at fair value, and consideration will be discharged by way of Optionally Convertible Redeemable Preference Shares (OCRPs) issued by KSSL.
- Bharat Forge to acquire 100% equity shares of AAM India for up to Rs. 7,700 million.
- AAM India is a leading manufacturer of axles for light, medium, and heavy commercial vehicles in India.
- The acquisition is expected to strengthen Bharat Forge's presence in the commercial vehicle axles market.