Bharat Forge will invest ₹240 crore in its wholly owned defence subsidiary, Kalyani Strategic Systems Ltd (KSSL), which will use up to ₹163 crore to fund its own subsidiary, Agneyastra Energetics Ltd (AEL), to set up a facility for filling ammunition shells.
The investments were disclosed in a regulatory filing on Friday. Bharat Forge’s investment in KSSL will be made through a rights issue at fair value, following board approval on August 10, 2026. The company will fund it through proceeds from its qualified institutional placement (QIP) and internal accruals. KSSL will allot equity shares to Bharat Forge on or before October 31, 2026.
KSSL will, in turn, invest up to ₹163 crore in AEL through a rights issue, in one or more tranches, with the investment to be completed by September 30, 2027. The payment will be made in cash, and KSSL will retain its 100% stake in AEL.
The investment is aimed at expanding Bharat Forge’s defence manufacturing capabilities. The proposed facility will specialise in pour filling, a process used to fill ammunition shells with explosive material.
AEL reported no turnover in FY26, according to the filing.
The investment comes as Bharat Forge builds its presence in the defence sector through its subsidiary KSSL, which focuses on defence and aerospace-related opportunities. The company said the proposed investment in AEL would be a related-party transaction conducted on an arm’s-length basis. It added that none of its promoters, promoter group members or group companies had an interest in the investments. No government or regulatory approvals are required.
Shares of Bharat Forge closed at ₹1,835 on the NSE on Friday, down ₹17.40, or 0.94%.