Kalyani Investment Company Limited (KICL) has been informed by its related party, Bharat Forge Limited (BFL), about the execution of a Shareholders Agreement (SHA). The agreement was entered into on February 2, 2026, between BFL, its wholly-owned subsidiary BF Industrial Solutions Limited (BFISL), J S Auto Cast Foundry India Private Limited (JS Auto), and PI Opportunities Fund I Scheme II (Investor). Under this SHA, certain entities affiliated with BFL, including KICL, are now subject to non-compete restrictions concerning the ferrous casting business and non-solicitation restrictions as detailed within the agreement. KICL holds a 13.24% equity shareholding in BFL and is not a direct party to the SHA, nor does it hold shares in BFISL or JS Auto. The agreement aims to define inter-se shareholder rights and obligations, including governance and transfer restrictions, to facilitate the transaction. The significant terms include customary provisions such as non-compete and non-solicitation clauses. Specifically, the parties are restricted from engaging in the ferrous casting business in India, except through JS Auto. However, business opportunities outside India can be explored, subject to rejection by the JS Auto Board of Directors. The company has stated that there is no impact on its management or control, and the transaction does not fall within related party transactions for KICL as it is not a party to the agreement.
