Manufacturing company Bharat Forge has acquired AAM India Manufacturing for Rs 746.4 crore. The acquisition includes the takeover of Rs 189.4 crore cash on the books of AAM India Manufacturing. The company will have a 100% stake in AAM India Manufacturing after the acquisition.
In an exchange filing, Bharat Forge said that earlier in the initial intimations in October 2024, the considered acquisition amount was Rs 544.5 crore on a debt or cash-free basis. However, after taking Rs 189.4 crore cash in AAM India Manufacturing’s books, the final purchase price is set at Rs 745.4 crore.
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Bharat Forge said that the available cash in AAM India Manufacturing’s books will be fully available for utilisation upon the completion of the purchase. The company said that it will use the cash to address future growth opportunities.
Bharat Forge restructuring
Bharat Forge has vast manufacturing operations covering sectors from automobiles, construction, and oil and gas to defence, marine, and aerospace. The company is carrying out an internal restructuring of its businesses for better management.
Last week, the company announced the transfer of its defence manufacturing business to Kalyani Strategic Systems Limited, a wholly owned subsidiary of Bharat Forge. The company said that the transfer will enable KSSL with dedicated and focused management of cutting-edge technology and high-growth potential defence business.
In an exchange filing, Bharat Forge said that Kalyani Strategic Systems reported a turnover of Rs 1,247 crore in the fiscal year 2024-25. In the previous fiscal years, FY24 and FY25, Kalyanai Strategic Systems’ turnover of Rs 1,144 crore and Rs 31 crore, respectively.
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