Bharat Forge announces that its subsidiary, JS Auto Cast Foundry India Private Limited (JS Auto), has entered into definitive agreements with PI Opportunities Fund I Scheme II (“Investor”). The investor will acquire a 23% stake in JS Auto on a fully diluted basis. The transaction involves the issuance of equity shares and compulsorily convertible preference shares. The deal is expected to be completed by March 31, 2026.
Strategic Investment in JS Auto
Bharat Forge Limited, along with its wholly-owned subsidiary BF Industrial Solutions Limited (BFISL), and JS Auto Cast Foundry India Private Limited (JS Auto), have finalized agreements with PI Opportunities Fund I Scheme II for a strategic investment. As per the terms, the Investor will subscribe to equity shares and Compulsorily Convertible Preference Shares (CCPS) in JS Auto, resulting in a 23% stake on a fully diluted basis.
Transaction Details
The definitive agreements include a Securities Subscription Agreement (SSA) and a Shareholders Agreement (SHA). The transaction is valued at approximately INR 300,00,00,000 (Indian Rupees Three Hundred crores). JS Auto will receive these funds through the issuance and allotment of Equity Shares and CCPS to the Investor.
Key Dates and Parties
The agreements were executed on February 2, 2026. The expected completion date for the transaction is March 31, 2026, subject to customary closing conditions.
Parties Involved:
- Bharat Forge Limited
- BF Industrial Solutions Limited (BFISL)
- JS Auto Cast Foundry India Private Limited
- PI Opportunities Fund I Scheme II (Investor), managed by PI Investment Advisory LLP, an affiliate of Premji Invest Group
Strategic Rationale
This investment supports the growth and development of JS Auto in the ferrous casting business. PI Opportunities Fund I Scheme II is known for making substantial investments in growing Indian companies with a focus on technology, finance, and consumer sectors.
Financial Impact
As of March 31, 2025, JS Auto contributed 4.61% to Bharat Forge’s consolidated income and 2.51% to its net worth.
Non-Compete Clause
The agreement includes a non-compete clause, preventing JS Auto from undertaking or engaging in the ferrous casting business in India, except through JS Auto. However, business opportunities outside India can be explored and undertaken by Bharat Forge.
Source: BSE
