Bharat Forge gains 1.5% after subsidiary Kalyani Strategic Systems incorporates JVC Sagar-Manas Technologies

9 Mar 2022 , 11:38 AM

Bharat Forge Limited informed the exchanges that its subsidiary Kalyani Strategic Systems (KSSL) has incorporated a joint venture company – Sagar-Manas Technologies (SMTL), with open joint stock company Dastan Transnational Corporation.

KSSL subscribed 750 equity shares of Rs10/- each of SMTL aggregating to Rs7,500. KSSL now holds 100% of shareholding (99.94% by KSSL + 0.06% through nominees). Consequently, SMTL becomes a step down subsidiary of the Company.

At around 11.42 am, Bharat Forge Ltd was trading at Rs623.70 per share up by Rs8.85 or 1.44% from its previous closing of Rs614.85 per share on the BSE.

The joint venture will help the company to participate in joint upgradation and manufacturing/ providing solutions for marine and defence products which will be undertaken through SMTL as a special purpose vehicle. Dastan, a Kyrgyzstan entity, is a leading multipurpose enterprise engaged in the development, manufacturing, sale of defence equipment, electronic devices, medical centrifuges, etc.

Upon completion of conditions precedent as envisaged in the Agreement, Dastan will acquire 49% of stake in SMTL. Consequently, KSSL will hold 51% and Dastan will hold 49% equity in SMTL.