Bharat Forge Approves Defence Business Transfer to KSSL and AAM India Acquisition

On June 30, 2025, Bharat Forge Limited’s Board approved 2 significant strategic actions: the transfer of its defence business to Kalyani Strategic Systems Limited (KSSL), a wholly owned subsidiary, and the acquisition of 100% equity in AAM India Manufacturing Corporation Private Limited for an amount not exceeding ₹7,700 million.

Defence Business Transition to KSSL

Bharat Forge has approved a definitive agreement with Kalyani Strategic Systems Ltd. (KSSL) to transfer identified defence assets and related obligations on an itemised sale basis. 

The transaction, valued at fair market rates by an independent valuer, will be settled via Optionally Convertible Redeemable Preference Shares (OCRPS) issued by KSSL. The ‘Investment Committee – Strategic Business’ has been authorised to finalise the transfer within 45 days, with a cost not exceeding ₹5,000 million.

KSSL, a wholly owned subsidiary of Bharat Forge, incorporated on 20 December 2010, develops and deploys defence products/components. It reported FY25 revenue of ₹12,470.29 million and a net worth of ₹2,320.42 million. Standalone turnover was ₹11,445.58 million in FY24 and ₹318.19 million in FY23.

Acquisition of AAM India

Bharat Forge announced Board approval for acquiring 100% equity in AAM India Manufacturing Corporation Pvt Ltd, with deal consideration capped at ₹7,700 million in one or more tranches. This follows the earlier Share Purchase Agreement (SPA) signed on 17 October 2024.

AAM India is a prominent manufacturer of axles for light, medium, and heavy commercial vehicles in India. Initially, the purchase price was estimated at ₹5,445.30 million on a debt-free, cash-free basis, subject to net working capital adjustments. As of 1 July 2025, the revised consideration rose to ₹7,700 million, driven mainly by higher cash balances. Bharat Forge confirmed that post-completion, all business and operations under AAM India will be fully available for utilisation. 

Also Read: These 3 PSUs Together Own 23% of NSE, Valued at ₹1.3 Lakh Crore!

Bharat Forge Share Price Performance 

As of July 1, 2025, at 9:45 AM, Bharat Forge share price is trading at ₹1,314.30 per share, reflecting a decline of 1.18% from the previous closing price. Over the past month, the stock has gained by 5.42%. 

Conclusion

Bharat Forge strengthens focus by transferring defence biz to KSSL and acquiring AAM India, aiming for value unlocking, sharper growth, and deeper presence in defence and auto segments while maintaining full compliance with SEBI regulations.

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