Bharat Forge Ltd raised Rs 1,650 crore through a Qualified Institutional Placement (QIP), which concluded on December 9, 2024. The funds raised through the QIP will be directed toward debt repayment and financing the company’s previously announced inorganic growth initiatives. The issue saw strong interest from both domestic and international investors, generating demand over 10 times the issue size.
The QIP was priced at Rs 1,320 per share, slightly below the floor price of Rs 1,323.54 set by SEBI's Issue of Capital and Disclosure Requirements (ICDR). Over 90% of the allocation was made to prominent domestic and foreign long-only funds and insurance companies.
Amit Kalyani, vice chairman and joint managing director of Bharat Forge, said, “We are thankful to the existing and new investors for the overwhelming response to the capital raise and for reaffirming their trust in the management during this transformational journey. We are committed to delivering enhanced growth and creating value for all stakeholders.”
Kotak Mahindra Capital Company Ltd and Morgan Stanley India Company Pvt Ltd served as the book running lead managers for the issue. Legal counsel was provided by Khaitan & Co for Bharat Forge, with Shardul Amarchand Mangaldas & Co. and Freshfields Bruckhaus Deringer advising the Book Running Lead Managers.
Bharat Forge is part of the Kalyani Group, an Indian industrial conglomerate with interests spanning forgings, automotive components, defense, aerospace, and clean energy. The company is a leading supplier of high-performance forged and machined components, serving sectors including automotive, aerospace, railways, and industrial equipment. It has a strong global presence, with manufacturing facilities in India, Germany, Sweden, and the United States.