Bharat Forge Transfers Defence Business to Kalyani Strategic Systems for ₹453 Crore

7 Aug 2025 , 10:48 AM

Bharat Forge, the Pune-based global forging giant, announced on August 6 that it has signed a Business Transfer Agreement (BTA) with Kalyani Strategic Systems. The agreement is valued at ₹453.3 crore, and aims to streamline Bharat Forge’s defence business through an internal restructuring move.

This transfer is part of the company’s broader strategy approved earlier on June 30, which included two key decisions:

• Reorganizing its defence vertical, and
• Raising the acquisition price for AAM India Manufacturing Corporation Pvt Ltd.

As part of the transaction, Kalyani Strategic Systems will issue optionally convertible redeemable preference shares (OCRPs). The restructuring will be carried out at fair value, as determined by an independent valuer, and is expected to be completed within 45 days.

Bharat Forge clarified that the restructuring will not affect its consolidated financials. Separately, the board has also approved an upward revision in the acquisition cost of AAM India from the earlier ₹544.5 crore to a maximum of ₹770 crore.

This deal, first announced in October 2024, involves the 100% acquisition of AAM India, a major axle supplier for light, medium, and heavy commercial vehicles in India.

On August 7, 2025, at 10:40 am, Bharat Forge shares are trading at ₹1,108 which is a 2.69% dip in the NSE. Bharat Forge shares have dipped 4% in the last five days, 15% n the previous month, and 28% in the previous year.

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