Bharat Forge to restructure its E-mobility vehicles business; stock zooms ~2%

21 Jun 2022 , 10:09 AM

Bharat Forge Limited informed that regard, in order to house all the EV investments of the Company under one entity, the ‘Investment Committee – Strategic Business’ of the Company at its meeting held on June 20, 2022, has approved the transfer of the Company’s stake in Refu Drive GmbH (Refu), Joint Venture (JV) company, to KPL subject to receipt of necessary approval from regulatory authorities.

The Company has agreed to consolidate its EV business initiatives under KPL, a wholly-owned subsidiary of the Company, for a better strategic alignment.

The Company currently holds 12,500 ordinary shares of Euro 1 each with a fair value of EUR 11.353 million, which will be transferred to KPL. As payment for acquiring the aforementioned shareholding at fair value, KPL would issue and allot to the Company 9,31,12,712 equity shares with a face value of Rs10 each at par.

The Company has authorized the transfer of the Company’s ownership in Refu to KPL in exchange for the Company’s subscription of equity shares in KPL. Refu will become an Associate Company of KPL as a result of this share transfer.

At around 10.20 AM, Bharat Forge was trading at Rs636.80 up by Rs12.4 or 1.99% from its previous closing of Rs624.40 on the BSE. The scrip opened at Rs639.80 and has touched intraday high and low of Rs639.80 and Rs624.20 respectively.