Key Highlights
- Bharat Forge announced the investment agreement on February 2, 2026.
- PI Opportunities Fund I Scheme II to acquire a 23% stake in JS Auto.
- Total investment value estimated at around ₹300 crore.
- JS Auto reported revenue of ₹697.07 crore in FY25.
- Transaction expected to close by March 31, 2026.
Bharat Forge Limited has entered into a strategic investment agreement to raise funds for its step-down subsidiary, J S Auto Cast Foundry India Private Limited (JS Auto).
Under the agreement, PI Opportunities Fund I Scheme II will invest around ₹300 crore in JS Auto. Following the investment, the fund will hold a 23% stake in the company on a fully diluted basis. The transaction will be carried out through the issuance of equity shares and compulsorily convertible preference shares (CCPS).
JS Auto is indirectly owned by Bharat Forge through BF Industrial Solutions Limited, a wholly owned subsidiary. Bharat Forge clarified that the investment does not result in any change in management control, and the investor is not part of the promoter or promoter group.
For the financial year ended March 31, 2025, JS Auto recorded revenue of ₹697.07 crore, contributing 4.61% to Bharat Forge’s consolidated revenue. The subsidiary’s net worth stood at ₹231.76 crore, representing 2.51% of the group’s consolidated net worth.
The transaction is expected to be completed by March 31, 2026, subject to the fulfilment of customary closing conditions and regulatory approvals. The agreements include standard provisions covering governance rights, information sharing, share transfer restrictions, and exit options for the investor.
Bharat Forge stated that the deal does not qualify as a related-party transaction and will not have any material impact on the company’s management or control structure. The company has also provided customary indemnities as part of the agreement, which are not expected to affect its financial position.