Bharat Forge Limited (BFL), through its wholly owned subsidiary BF Industrial Solutions Limited (BFISL) and step-down wholly owned subsidiary J S Auto Cast Foundry India Private Limited (JS Auto), has entered into Definitive Transaction Agreements with PI Opportunities Fund I Scheme II ("Investor"). Under these agreements, the Investor will subscribe to Equity Shares and Compulsorily Convertible Preference Shares (CCPS) in JS Auto, acquiring a 23% stake on a fully diluted basis. The total investment amounts to approximately ₹300 crore (300,00,00,000). JS Auto is a significant contributor to BFL's financials, with an income of ₹697.07 crore (4.61% of BFL's consolidated financials) and a net worth of ₹231.76 crore (2.51%) as of March 31, 2025. The Definitive Transaction Agreements were executed on February 2, 2026. The proposed transaction is expected to be completed by March 31, 2026, subject to the fulfillment of closing conditions. PI Opportunities Fund I Scheme II is an Alternative Investment Fund managed by PI Investment Advisory LLP and is an affiliate of Premji Invest Group. The investor is not a related party to Bharat Forge. The agreements include customary provisions such as non-compete clauses, restrictions on share transfers, and exit mechanisms. Bharat Forge Limited, as the ultimate parent company of JS Auto, has provided customary indemnity to the Investor on behalf of JS Auto and BFISL, which is not expected to have an immediate impact on the Company.
