Bharat Forge shares were trading slightly up after it announced it would invest ₹105.45 crore in its subsidiary Kalyani Powertrain.
What Happened: Bharat Forge will invest ₹105.45 crore to subscribe to 10.54 crore equity shares in Kalyani Powertrain, a wholly owned subsidiary of the company that holds its electric vehicle and e-mobility businesses.
Bharat Forge said the investment will be used towards strategic initiatives of the company to house all electric mobility initiatives under Kalyani Powertrain. The investment will be completed on or before September 30, the company announced.
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Kalyani Powertrain has made a turnover of ₹64.9 crore in FY24 and ₹16.28 crore in FY23.
In its June quarter results, Bharat Forge saw its net profit fall 9% to ₹202.8 crore while its revenue rose 6% to ₹4106.1 crore. EBITDA surged 22.88% year on year to ₹759.2 crore.
A provision of impairment to Kalyani Powertrain resulted in a one-time exceptional loss of ₹151.7 crore, which affected the company’s bottomline.
Price Action: Shares of Bharat Forge were up 0.60% to ₹1,630.90 on Friday.
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