Bharat Forge advanced 1.89% to Rs 752.45 after the company, through its wholly owned subsidiary BF Industrial Solutions (BFISL), acquired 100% control of Sanghvi Forging & Engineering (SFEL).
The company's resolution plan for Sanghvi Forging was approved by the National Company Law Tribunal Ahmedabad Bench on 26 April 2021 and by the Committee of Creditors (CoC) of SFEL on 17 February 2021.
Sanghvi Forging & Engineering is engaged in the manufacture of open and closed die forging products for the oil & gas, defence, ship building, power & other sectors and is an exporter of products to various foreign countries over the last two decades; SFEL is also engaged in manufacturing components for defence and aerospace, power, oil & gas, construction & mining, railways, marine and general engineering sectors.
Bharat Forge said that in accordance with the terms of the approved resolution plan, the company has fully implemented the resolution plan. It has delisted the equity shares of SFEL from BSE and National Stock Exchange (NSE) with effect from 17 June 2021.
SFEL has issued and allotted 50,000 equity shares at face value of Rs 10 to BFISL and its nominees on a preferential basis through private placement.
The entire issued, subscribed and paid-up equity share capital of the SFEL i.e. 1.48 crore equity shares of Rs 10 each fully-paid-up aggregating Rs 14.89 crore, excluding the new equity shares allotted to BFISL and its nominees, was cancelled and extinguished.
Subsequent to the aforesaid selective capital reduction of the equity share capital of SFEL, SFEL has become a wholly-owned subsidiary of BFISL and thus a step-down subsidiary of Bharat Forge.
Further, funds amounting to Rs 15 crore were infused in SFEL by BFISL by way of subscription of 40 lakh equity shares at face value of Rs 10 per share and issue of 1.10 lakh zero coupon optionally convertible debentures at face value of Rs 1,000 per debenture.
In terms of the approved resolution plan, the secured financial creditors has been paid an aggregate amount of Rs 75 crore by BFISL for the assignment of existing financial debt of SFEL.
Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries.
Bharat Forge posted a standalone net profit of Rs 205.5 crore in Q4 FY21 compared with net loss of Rs 73.2 crore in Q4 FY20. Total revenue increased 48.3% to Rs 1,307.4 crore in Q4 FY21 as against Rs 881.2 crore in Q4 FY20.
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