Bharat Forge Limited has invested Rs 240 crore in equity shares of its wholly owned subsidiary Kalyani Strategic Systems Limited (KSSL) by way of a rights issue at fair value. The investment follows Board approval on August 10, 2026, and was funded from proceeds of the company’s Qualified Institutional Placement and internal accruals.
KSSL will further invest Rs 163 crore of this amount in equity shares of Agneyastra Energetics Limited (AEL), its wholly owned subsidiary, in one or more tranches at fair value, by way of a rights issue. The KSSL Board has approved the investment.
KSSL will allot equity shares to Bharat Forge on or before October 31, 2026. The investment in AEL will be completed on or before September 30, 2027. The consideration is cash. KSSL will continue to hold 100% of AEL.
The investment will operationalize AEL and enable it to set up a facility for pour filling of ammunition shells.
AEL is an Indian public limited company incorporated on July 2, 2025. It was set up to manufacture high energy explosives, gun propellants and rocket propellants, and to fill heavy and medium caliber ammunition with high explosives. Its turnover for the year ended March 31, 2026 was nil. Turnover for FY 2024-25 and FY 2023-24 is not applicable.
AEL is a related party of Bharat Forge, and the investment will be a related party transaction conducted on an arm’s length basis. None of the company’s promoters, promoter group or group companies have any interest in the investment. No governmental or regulatory approvals are required.
The details of Bharat Forge’s investment in KSSL were disclosed in an earlier intimation dated August 10, 2026.