Bharat Forge Limited has entered into a Joint Venture Agreement ("JV Agreement") with Refu Electronik GmbH, Germany and its Affiliates / Promoters ("REFU") on June 6, 2019 for incorporating a Joint Venture Company, under the laws of Germany for developing, manufacturing and selling on board controllers and components mainly - drives, invertors, converters (including AC/DC) and all kind of auxiliary applications, related power electronics and battery management (BMS), etc. for all quality of e-mobility vehicles viz, hybrid and electric 2-wheelers, 3-wheelers, cars and commercial vehicles.
In the proposed Joint Venture Company(JVC), the Company will hold 50% of stake by making an investment of EUR 11.35 Million by way of equity shares at nominal value of Euro 1, subject to fulfillment of conditions in Share Purchase Agreement and JV Agreement between the parties.
Both the parties will have joint management with equal rights to appoint Board with equal capital contribution and representation. Each party as a shareholder of the proposed JVC, will have affirmative rights on certain businesses, strategic and governance matters.
REFU is not related to the promoters / promoter group / group companies of the Company and the said transaction does not fall under the provisions of the Related Party Transaction.
Shares of BHARAT FORGE LTD. was last trading in BSE at Rs.456.25 as compared to the previous close of Rs. 460.45. The total number of shares traded during the day was 59910 in over 924 trades.
The stock hit an intraday high of Rs. 464 and intraday low of 454.8. The net turnover during the day was Rs. 27480232.