Bharat Forge invests ₹2,400 million in defence arm KSSL, ₹1,630 million to flow to new energetics unit

Bharat Forge told the exchanges it has invested in equity shares of Kalyani Strategic Systems Limited (KSSL), its wholly owned subsidiary, through a rights issue at fair value. The board approved the investment on August 10, 2026, and allotment of shares against it is to be completed on or before October 31, 2026. Per the filing, the funds came from the company's Qualified Institutional Placement proceeds and internal accruals.

Part of the KSSL infusion is to travel further down the subsidiary chain. The filing states that KSSL will in turn invest in equity shares of Agneyastra Energetics Limited (AEL), its own wholly owned subsidiary — making AEL a step-down wholly owned subsidiary of Bharat Forge. AEL is described as a specialised energetics manufacturer for defence and space applications, with a portfolio spanning explosives, propellants, pyrotechnics and integrated energetic systems. The stated purpose is to operationalise AEL and enable it to set up a facility for pour filling of ammunition shells. This downstream investment is to be completed in tranches on or before September 30, 2027.

AEL was incorporated on July 2, 2025 and reported nil turnover for FY 2025-26, with no reportable figures in the two prior years. KSSL will continue to hold 100% of AEL after the investment. The AEL infusion is flagged as a related party transaction on an arm's length basis; the filing states that none of the company's promoter or group companies have any interest in the investments, and that no governmental or regulatory approvals are required.