By Malvika Gurung
Investing.com — The leading forging company Bharat Forge (NS:BFRG) has announced the transfer of its stake held in the associate company Aeron Systems to a wholly-owned subsidiary Kalyani Strategic Systems (KSSL).
The company informed in a regulatory filing that it will transfer all of its shares held in Aeron to KSSL so that all of its defense related investments are housed under a single entity, the ‘Investment Committee – Defence Business’, which shall lead to a better strategic alignment, said Bharat Forge.
The auto components and defence contracts major Bharat Forge has approved the said stake transfer from Aeron to KSSL in consideration of the subscription of equity shares in a board meeting held on Thursday.
Currently, Bharat Forge holds 1,36,500 equity shares of Aeron at a face value of Rs 10 apiece, comprising 37.14 % of the total paid-up capital of the company.
This will be transferred completely to KSSL at consideration for acquiring the said stake at fair value by issuance and allotment of 1,37,18,250 equity shares of the face value of Rs 10 at par.
KSSL is a wholly-owned subsidiary of Bharat Forge, while Aeron is an associate. On the complete transfer of equity shares, Aeron will become an associate of the KSSL.