Bharat Forge Limited has announced that it will divest a 23% stake in its step-down wholly owned subsidiary, JS Auto Cast Foundry India Private Limited (JS Auto), to PI Opportunities Fund I Scheme II (“Investor”). The transaction will occur through a subscription of equity shares and compulsorily convertible preference shares by the Investor, with JS Auto receiving approximately INR 300 crore. The deal is expected to close by March 31, 2026.
Strategic Stake Sale in JS Auto
Bharat Forge Limited (the “Company”) has entered into definitive transaction agreements to divest a significant minority stake in JS Auto Cast Foundry India Private Limited (“JS Auto”). BF Industrial Solutions Limited (“BFISL”), a wholly owned subsidiary of Bharat Forge, and JS Auto are parties to the agreement with PI Opportunities Fund I Scheme II (the “Investor”). According to the agreement formalized on February 2, 2026, the Investor will acquire a 23% stake in JS Auto on a fully diluted basis.
Transaction Details
Under the terms, the Investor will subscribe to equity shares and Compulsorily Convertible Preference Shares (CCPS) issued by JS Auto. JS Auto is expected to receive approximately INR 300,00,00,000 as part of this transaction. The company anticipates the transaction to be completed by March 31, 2026, subject to standard closing conditions.
Investor Profile
PI Opportunities Fund I Scheme II is an Alternative Investment Fund (AIF) managed by PI Investment Advisory LLP, an affiliate of Premji Invest Group. Premji Invest Group is known for making substantial investments in growing Indian companies, focusing on technology, finance, and consumer sectors, and funding the Azim Premji Foundation.
Impact on Bharat Forge
While JS Auto contributed 4.61% and 2.51% of Bharat Forge’s income and net worth, respectively, during the last financial year (as of March 31, 2025), this divestment allows Bharat Forge to potentially unlock value and bring in a strategic investor to further develop JS Auto. As of February 2, 2026, Bharat Forge holds 100% stake in BFISL and subsequently 100% stake in JS Auto through BFISL.
Source: BSE
