Bharat Forge Invests Rs 110 Cr in Its Global Holding Arm

Bharat Forge has approved a fresh capital infusion of Rs 110 crore into its wholly owned subsidiary, Bharat Forge Global Holding GmbH, marking another step in strengthening its overseas operations.

The capital contribution is an equivalent of 10 million euros that the investment will be made and is estimated to be completed by January 31, 2026, as announced by a regulatory filing today.

The ruling highlights the fact that Bharat Forge still values and aims to develop and maintain its manufacturing presence across the globe. Germany based Bharat Forge Global Holding GmbH is the major overseas holding company of the company and also owns a number of step down subsidiaries in Germany, Sweden, and France. These units are the key to the European forging and engineering businesses of the group.

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According to the company, the investment will be financed by the internal accruals. The transaction is also categorized as a related-party deal although it has been undertaken at arm-length. As the subsidiary is a complete acquisition, there will be no dilution of equity and ownership structure.

Through the reinforcement of capital base of its global holding company, Bharat Forge will be in a position to serve the requirements of its functioning, enhance financial flexibility as well as financing long term growth initiatives in the major global markets. Europe is one of the strategic areas where the company can supply its automotive, industrial, and engineering clients.

The recent investment shows that Bharat Forge is determined to remain committed to its global business in spite of the prevailing global economic uncertainties. The company shares were listed in the exchanges after the announcement and investors were keen to see how the overseas investments will be converted into performance in future.