Bharat Forge to put up to ₹2,905 million more into KSSL
- Mergers & acquisitions
- Castings/Forgings
Reviewed byKeshav SehgalBlacklitt Research
Bharat Forge (NSE: BHARATFORG) approved a further investment of not exceeding ₹2,905.08 million in its wholly owned subsidiary Kalyani Strategic Systems Limited (KSSL), in cash and in one or more tranches, it said in a filing on 05 Nov 2026. The investment is at fair value and is to be completed on or before 31 Mar 2027.
The investment in detail
The board approved on 05 Nov 2026 a further investment of an amount not exceeding ₹2,905.08 million in Kalyani Strategic Systems Limited (KSSL), the company's wholly owned subsidiary, at fair value and in one or more tranches. The consideration is cash. The filing says the investment is in the nature of related party transactions and will be on an arm's length basis. KSSL is a related party, and none of the company's promoter, promoter group or group companies have any interest in it.
KSSL is a public limited company incorporated on 20 Dec 2010, with its registered office in Pune, and is engaged in developing and manufacturing defence platforms, systems and equipment. The filing says the investment will be funded from the proceeds of the Qualified Institutional Placement (QIP), in line with the objects of issue in the QIP placement document, and used by KSSL for capital expenditure and investment in product and technology development. The company will continue to hold 100% of KSSL.
How it fits the company's recent funding
KSSL's turnover was ₹12,244.70 million in FY 2025-26, down 12.8% from ₹14,044.97 million in FY 2024-25, and ₹11,445.58 million in FY 2023-24. The QIP named as the funding source issued 10,582,010 equity shares at ₹1,890 each, aggregating ₹20,000.00 million, in the quarter ended 30 Sep 2026. The filing says ₹19,316.71 million of those proceeds was unspent at 30 Sep 2026 and placed with banks. A separate update on an investment in a wholly owned subsidiary was filed on 30 Oct 2026.
What the investment means for Bharat Forge's shareholders
The filing does not say when each tranche will be paid, what effect the investment will have on the company's results or capital structure, or why KSSL needs funds beyond the stated capital expenditure and product development. The next dated step is completion on or before 31 Mar 2027.
At a glance
| Item | Detail |
|---|---|
| Subsidiary | Kalyani Strategic Systems Limited (KSSL) |
| Incorporated | 20 Dec 2010 |
| Registered office | Pune |
| Maximum further investment | ₹2,905.08 million, in one or more tranches |
| Consideration | Cash, at fair value |
| Holding after investment | 100% |
| Completion | On or before 31 Mar 2027 |
Filed with BSE on . Reference: Original filing (PDF)
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