The company intends to use the proceeds to repay debt and finance previously disclosed inorganic growth plans. Bharat Forge Limited successfully raised INR 1,650 crore through a Qualified Institutional Placement (QIP) that closed on December 9, 2024. The funds will be used for debt repayment and to support previously announced inorganic growth initiatives. The QIP saw strong demand, exceeding the issue size by more than ten times.
The QIP attracted substantial interest from both domestic and international qualified institutional investors. Over 90% of the allocation was directed towards prominent domestic and foreign long-only funds and insurance companies. Shares were issued at INR 1,320 per share, compared to a floor price of INR 1,323.54 per share set by SEBI ICDR.
Where does the company intend to do?
The company intends to use the proceeds to repay debt and finance previously disclosed inorganic growth plans. Bharat Forge aims to drive further expansion and generate value for stakeholders.
“We are thankful to the existing and new investors for the overwhelming response to the capital raise and for reaffirming their trust in the management in the transformational journey we are undertaking. We are committed to deliver enhanced growth creating value for all the stakeholders,” stated Amit Kalyani, Vice Chairman & Joint Managing Director of Bharat Forge Limited.
Kotak Mahindra Capital Company Limited and Morgan Stanley India Company Private Limited served as the Book Running Lead Managers (BRLM) for the QIP. Legal counsel for Bharat Forge was provided by Khaitan & Co. Shardul Amarchand Mangaldas & Co. and Freshfields Bruckhaus Deringer acted as legal counsel for the BRLMs. The successful fundraising reflects strong investor confidence in Bharat Forge's growth strategy.
