Bharat Forge plans to consolidate EV biz, transfers Refu stake to KPL, Auto News, ET Auto
New Delhi: As part of internal restructuring of E-mobility vehicles business, Bharat Forge has approved the transfer of the company’s stake in the joint venture Refu Drive GmbH (Refu), to Kalyani Powertrain (KPL), a wholly-owned subsidiary of the company, subject to receipt of necessary approval from regulatory authorities.
The decision is part of the company’s initiative to consolidate its electric vehicle business under KPL, the company said in a regulatory filing.
” in order to house all the EV investments of the company under one entity, the ‘Investment Committee – Strategic Business’ of the Company, at its meeting held on June 20, 2022, approved the transfer of the company’s stake in Refu Drive GmbH (Refu), to KPL subject to receipt of necessary approval from regulatory authorities,” Bharat Forge said in a BSE filing.
The Pune-based company has decided to consolidate its EV business initiatives under KPL, a wholly-owned subsidiary of the Company, for a better strategic alignment.
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 kinds of auxiliary applications, 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 its stake in Refu to KPL in consideration of subscription of equity shares of KPL. Through this transfer of shares, Refu will become an associate company of KPL.
Bharat Forge holds 12,500 ordinary shares of EUR 1 each with a fair value of EUR 11.353 million, which will be transferred to KPL. As payment for acquiring the aforementioned shareholding at fair value, KPL would issue and allot to the company 9,31,12,712 equity shares with a face value of INR 10 each at par.
In March 2021, Bharat Forge formed Kalyani Powertrain to look into electric vehicle (EV) business initiatives. The newly- formed subsidiary will look at organic and inorganic opportunities in the EV space, the forging giant said in a statement.