Bharat Forge Invests ₹1,100.45 Million in German Subsidiary

Bharat Forge Limited has informed stock exchanges about a fresh capital infusion into its wholly owned subsidiary, Bharat Forge Global Holding GmbH (BFGH). The investment, amounting to ₹1,100.45 million (€10 million), has been made by way of contribution to the capital reserve. 

This move follows the company’s earlier disclosures regarding investments and guarantees to its foreign subsidiaries and their step-down entities.

About Bharat Forge Global Holding GmbH

Bharat Forge Global Holding GmbH was incorporated on December 15, 2003, and is based in Germany. It functions as the holding company for Bharat Forge’s overseas investments and has manufacturing subsidiaries across Germany, Sweden, and France. For the period from January 2024 to December 2024, BFGH reported a turnover of €6.50 million, reflecting stable operations across its European footprint.

Nature of Transaction and Governance

The investment qualifies as a related party transaction, as BFGH is a wholly owned subsidiary of Bharat Forge Limited. The company has clarified that the transaction is being carried out on an arm’s length basis. Certain executives of Bharat Forge serve on the advisory board of BFGH, while no other promoter or group entity has a direct interest in the transaction.

Purpose and Strategic Impact

The capital infusion is aimed at supporting the ongoing operations of BFGH and strengthening the holding structure for Bharat Forge’s overseas manufacturing businesses. By reinforcing its global holding entity, Bharat Forge seeks to enhance financial flexibility, support future growth initiatives, and ensure stability across its European subsidiaries.

Transaction Details and Timeline

The investment has been made entirely in cash through equity capital infusion. Bharat Forge will continue to hold 100% equity ownership and control over BFGH following the transaction. All requisite regulatory and governmental approvals have already been obtained, and the investment is expected to be completed by January 31, 2026.

Bharat Forge Share Price Performance

On January 30, 2026, Bharat Forge share price (NSE: BHARATFORG) opened at ₹1,434.70, touching the day’s high at ₹1,450.90, as of 12:37 PM on the NSE.

Also Read: Bharat Forge Secures ₹300 Crore Contracts for Indigenous Unmanned Systems!

Conclusion

Bharat Forge’s €10 million investment in its German subsidiary underscores its commitment to strengthening its global operations. The move reinforces its long-term international strategy while ensuring continued control and support for its overseas manufacturing footprint.

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