Bharat Forge Limited to consolidate EV investments

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In order to house all the EV investments of the Company under one entity, the ‘Investment Committee – Strategic Business’ of Bharat Forge Limited at its meeting held on June 20, 2022, has approved the transfer of the Company’s stake in Refu Drive GmbH (“Refu”), Joint Venture (JV) company, to KPL subject to receipt of necessary approval from regulatory authorities.

The current stake in Refu was acquired by the Company by entering into a Joint Venture Agreement with Refu Electronik GmbH, Germany and its affiliates. Refu is in the business of development, manufacturing and selling on board controllers and components mainly – drives, invertors, converters (including AC/DC) and all kind of auxilia a lications, related power electronics and battery management (BMS) etc.

For all e-mobility vehicles viz. hybrid and electric 2-wheelers, 3-wheelers, cars and commercial vehicles. The Company has approved the transfer of the Company’s stake in Refu to KPL in consideration of subscription of equity shares of the KPL by the Company. Through this transfer of shares, Refu will become an Associate Company of KPL.

The Company currently holds 12,500 (Twelve Thousand Five Hundred Only) ordinary shares of EUR 1 (Euro One only) each having an aggregate fair value of Eur 11.353 Mn which shall be transferred to KPL. KPL shall, as a consideration for acquiring the said stake at fair value, issue and allot 9,31,12,712 equity shares of face value of Rs. 10/- at par to the Company.