Kalyani Steels has received intimation from Bharat Forge Limited (BFL) regarding the execution of a Shareholders Agreement (SHA) between BFL, BF Industrial Solutions Limited (BFISL), and J S Auto Cast Foundry India Private Limited with PI Opportunities Fund I Scheme II. The agreement, effective February 2, 2026, includes non-compete and non-solicitation restrictions for certain entities affiliated with BFL.
Shareholders Agreement Details
Bharat Forge Limited (BFL) has executed a Shareholders Agreement (SHA) effective February 2, 2026. The parties involved are BFL, BF Industrial Solutions Limited (BFISL), J S Auto Cast Foundry India Private Limited (collectively referred to as “BFL Group”), and PI Opportunities Fund I Scheme II (“Investor”).
Non-Compete Restrictions
Under the SHA terms, certain entities affiliated with the BFL Group, which includes Kalyani Steels, are subject to non-compete restrictions. These restrictions pertain to the ferrous casting business and include non-solicitation provisions as outlined in the agreement.
Agreement Purpose
The purpose of entering into the agreement is for the BFL Group and the Investor to set out their inter-se shareholder rights and obligations. These include governance, information rights, transfer restrictions, and certain ancillary covenants undertaken by the BFL Group to facilitate the transaction.
Significant Terms
The agreement includes customary provisions such as non-compete and non-solicitation clauses. The BFL Group is restricted from undertaking or engaging in the ferrous casting business in India, except through JS Auto. However, business opportunities can be explored or undertaken outside India with the rejection of the same by JS Auto Board of Directors.
Source: BSE
