Bharat Forge Limited on Monday announced a major internal restructuring of its defence business, along with an upward revision in the acquisition cost of AAM India Manufacturing Corporation Private Limited.
As part of the realignment, Bharat Forge will transfer select defence-related assets and obligations to its wholly owned subsidiary Kalyani Strategic Systems Ltd through an itemised sale. The move is expected to sharpen operational focus and enhance strategic clarity in the defence sector. The transaction will be carried out at fair value, based on an independent valuation, the company said.
In return, KSSL will issue Optionally Convertible Redeemable Preference Shares (OCRPs) worth up to Rs 500 crore to Bharat Forge. The restructuring is expected to be completed within 45 days, Bharat Forge said.
KSSL, which focuses on defence product development and deployment, posted a turnover of Rs 1,247 crore and a net worth of Rs 232 crore in FY25.
The company’s board has also approved raising the acquisition cost of AAM India to a maximum of Rs 770 crore, revising it from the earlier estimate of Rs 544.5 crore.