Bharat Forge Limited intends to purchase 49% stake in its subsidiary - Kalyani Strategic Systems Limited (KSSL). Since KSSL holds Industrial License under the Arms Act, 1959 read with the Arms Rules, 2016, the said acquisition of shares shall be subject to prior approval of Ministry of Home Affairs / Department for Promotion of Industry and Internal Trade.
Currently the Company holds 51% stake in KSSL. After this acquisition, KSSL shall become a wholly owned subsidiary of the Company.
KSSL is a Defence oriented Company engaged in the field of developing / deploying defence electronics, systems development, system integration for defence products / components.
KSSL is the holding Company for the defence vertical of Bharat Forge Group. This acquisition shall result in making it the wholly owned subsidiary of the Company which shall enable it to be eligible for participating in various defence programs.
The cost of acquisition is Rs. 32.97 Crores for 49% shareholding in KSSL. Valuation of KSSL has been done by an independent valuer appointed by the Board of the Company.
Shares of BHARAT FORGE LTD. was last trading in BSE at Rs.655.1 as compared to the previous close of Rs. 648.3. The total number of shares traded during the day was 106368 in over 2716 trades.
The stock hit an intraday high of Rs. 668 and intraday low of 641.8. The net turnover during the day was Rs. 70099191.