Bharat Forge Ltd — Capital/Financing Update 2022

Mar 8, 2022

B H A R A T F O R GE

March 08, 2022

To,

BSE Limited,

1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, Mumbai - 400 001 BSE SCRIP CODE - 500493

National Stock Exchange of India Limited

'Exchange Plaza', Bandra-Kurla Complex, Sandra (East) Mumbai- 400 051 Symbol: BHARATFORG Series: EQ

Dear Sir,

Sub.: Intimation regarding incorporation of a step-down subsidiary

Ref.: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

We wish to inform you that Kalyani Strategic Systems Limited ("KSSL"), a wholly owned subsidiary of Bharat Forge Limited ("the Company") has incorporated a Company "Sagar-Manas Technologies Limited" ("SMTL") (CIN: U291 00PN2022PLC209117) on March 07, 2022 as a wholly owned subsidiary.

SMTL has been incorporated pursuant to a Joint Venture Agreement ("Agreement") executed between KSSL and Open Joint Stock Company Dastan Transnational Corporation Ltd.("Dastan") with an aim to participate in joint upgradation and manufacturing/ providing solutions for marine and defence products which will be undertaken through SMTL as a special purpose vehicle. Dastan, a Kyrgyzstan entity, is a leading multipurpose enterprise engaged in the development, manufacturing, sale of defence equipment, electronic devices, medical centrifuges, etc.

Upon completion of conditions �recedent as envisaged in the Agreement, Dastan will acquire 49% of stake in SMTL. Consequently, KSSL will hold 51 % and Dastan will hold 49% equity in SMTL.

The details as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD4/2015 dated 9[th] September, 2015 is given as under:

==> picture [35 x 34] intentionally omitted <==

==> picture [96 x 88] intentionally omitted <==

KALYAN I

BHARAT FORGE LIMITED, MUNDHWA, PUNE411036, MAHARASHTRA, INDIA. PHONE:+ 91 20 6704 2476 6704 2777 (Secreta1ial) Fax 020 2682 2163 CIN L25209PN 1961 PLC0l2046 Fm�il· •fwt�li�I "bh;1rfttfr11,. rn,1 WER'ilTE; w111w.bh�ntforg�.r.om

BHARAT FORGE

a)	Name of the target entity,	Name:Sagar-Manas Technologies Limited
	details in brief such as size,	("SMTL")
	turnover etc.
		Authorized Capital:Rs. 7,500 (750 equity
		shares of Rs. 10/- each)
		Issued, Subscribed & Paid-up Capital:Rs.
		7,500 (750 equity shares of Rs. 10/- each)
		Turnover: Nil, since SMTL is a newly
		incorporated company.
b)	Whether the acquisition would	KSSL, wholly owned subsidiary has
	fall within related party	incorporated SMTL as wholly owned
	transaction(s) and whether the	subsidiary.
	promoter/ promoter group/
	group companies have any	The initial subscription by KSSL does not fall
	interest in the entity being	within the purview of related party
	acquired?	transaction.
	If yes, nature of interest and
	details thereof and whether the	The promoter/promoter group of the
	same is done at "arm's length";	Company have no interest in SMTL.
c)	Industry to which the entity	Manufacturing and providing solutions for
	being acquired belongs;	marine and defence products/ equipment
d)	Objects and efects of	SMTL is incorporated for setting up a special
	acquisition (including but not	purpose vehicle company for participating in
	limited to, disclosure of reasons	joint upgradation/ development and
	for acquisition of target entity, if	manufacturing of defence products and
	its business is outside the main	equipment by virtue of collaboration with
	line of business of the listed	Dastan.
	entity);
		SMTL will use advanced technology to
		undertake its objectives.
		This will result in growth opportunities and
		business expansion in line with the strategic
		goals of KSSL.
e)	Brief details of any	Not Applicable
	governmental or regulatory
	approvals required for the
	acquisition;
f)	Indicative time period for	Not Applicable.
	completion of the acquisition;
		However, after completion of condition
		precedents as envisaged in the Agreement,
	�' KALYANI � E r I � BHARAT FORGE LIMITED, MUNDHWA, PUNE41 I 036, MAHARASHTRA, INDIA. C411 036.o PHONE:+ 91206704 2 476 6704 2777 (Secretarial) Fax 020 2682 2163 CIN l25209PN1961 PLC0l2046, Email.ectellltbhl1,t,haiutllrnl.Clll!I WEBSITE: www.bhar.1furg�.co1n �

BHARAT FORGE

			Dastan will acquire 49% of paid up equity
			capital of SMTL.
g)	Nature of consideration	-	Cash
	whether cash consideration or
	share swap and details of	the
	same;
h)	Cost of acquisition or the price		Rs. 7,500/- (Rupees Seven Thousand Five
	at which the shares	are	Hundred Only) (750 equity shares of Rs. 10/-
	acquired;		each subscribed by KSSL)
i)	Percentage of shareholding /		100% of shareholding by KSSL (99.94% by
	control acquired and /	or	KSSL+ 0.06% through nominees).
	number of shares acquired;		Consequently, SMTL becomes a step down
			subsidiary of the Company.
j)	Brief background about	the	Brief background:
	entity acquired in terms	of
	products/line of business		KSSL has promoted and incorporated SMTL
	acquired, date of incorporation,		to undertake design, development,
	history of last 3 years turnover,		manufacturing, assembly, testing,
	country in which the acquired entity has presence and any		integration, trading, marketing, sales, providing services, spares support, afer
	other significant information	(in	sales support,R&Dfor various marine and
	brief);		defence products and solutions.
			Date of incorporation:
			March 07, 2022
			Turnover for past 3 years:
			Nil, since SMTL is a newly incorporated
			company.

Kindly take the same on record.

Thanking you,

Yours faithfully, For Bharat Forge Limite /i Tejasw audhari Company Secretary & Compliance Officer

==> picture [36 x 34] intentionally omitted <==

KALYAN I

BHARAT FORGE LIMITED, MUNDHWA, PUNE41 I 036, MAHARASHTRA, INDIA. PHONE:+ 91 20 6704 2476 6704 2777 (Secretarial) Fax 020 2682 2163 CIN L25209PN196JPLC0J2046 Eimoil; u,mvlilriul r11bhu1 forQ,OOm Wlil lTli1 w1•,[1] 11[1] ,bh11mtfm,go.oom