Bharat Forge Limited (BFL), through its wholly owned subsidiary BF Industrial Solutions Limited (BFISL) and step-down wholly owned subsidiary JS Auto Cast Foundry India Private Limited (JS Auto), has entered into definitive transaction agreements with PI Opportunities Fund I Scheme II on February 2, 2026. 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. This transaction will result in approximately ₹300 crore being invested into JS Auto. JS Auto contributed ₹697.07 crore in income and had a net worth of ₹231.76 crore as of March 31, 2025, representing 4.61% and 2.51% of BFL's consolidated financials, respectively. The 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 (AIF) managed by PI Investment Advisory LLP, an affiliate of Premji Invest Group, and is not considered a related party to Bharat Forge. The agreements include customary provisions such as non-compete clauses, restrictions on share transfers in BFISL, a structured exit mechanism, and indemnity. Bharat Forge has provided customary indemnity to the investor on behalf of JS Auto and BFISL. The company expects no immediate impact on its financials from these indemnity provisions.
