Bharat Forge said that the 'investment committee - Defence Business' of the company has approved the transfer of the company's stake in Aeron Systems (Aeron) to Kalyani Strategic Systems, a wholly-owned subsidiary of the company (KSSL).
The Pune-based company has decided to house all its defense related investments under KSSL, a wholly-owned subsidiary of the company, for a better strategic alignment.
The company has thus approved the transfer of the company's stake in Aeron to KSSL in consideration of subscription of equity shares of the KSSL by the company.
Bharat Forge currently holds 1,36,500 equity shares, constituting 37.14 % of total paid-up capital of Aeron, which shall be transferred to KSSL. KSSL shall, as a consideration for acquiring the said stake at fair value, issue and allot 1,37,18,250 equity shares to the company.
Bharat Forge (BFL) manufactures an extensive array of critical and safety components for several sectors including automobiles (across commercial & passenger vehicle), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining and general engineering.
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The company reported 14.3% drop in standalone net profit to Rs 289.2 crore in Q3 FY23 from Rs 337.4 crore in Q3 FY22. Total revenue rose by 21.8% YoY to Rs 1,952.1 crore during the quarter.
The scrip shed 0.15% to currently trade at Rs 828.65 on the BSE.
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