Bharat Forge rose 1.06% to Rs 461.70 at 09:18 IST on BSE after the company entered into a Joint Venture Agreement with Refu Electronik GmbH, Germany.
The announcement was made after market hours on Friday, 7 June 2019.On the BSE, 4,307 shares were traded in the counter so far compared with average daily volumes of 81,000 shares in the past two weeks. The stock had hit a high of Rs 464.30 and a low of Rs 457.40 so far during the day.
Bharat Forge has entered into a Joint Venture Agreement (JVAgreement) with Refu Electronik GmbH, Germany and its Affiliates / Promoters (REFU) on 6 June 2019. The JVA for incorporating a Joint Venture Company (JVC), under the laws of Germany for developing, manufacturing and selling on board controllers and components mainly - drives, invertors, converters (including AC/DC) and all kind of auxiliary applications, related power electronics and battery management (BMS), etc. for all quality of e-mobility vehicles viz, hybrid and electric 2-wheelers, 3-wheelers, cars and commercial vehicles.
In the proposed JVC, Bharat Forge will hold 50% of stake by making an investment of EUR 11.35 million by way of equity shares at nominal value of Euro 1, subject to fulfilment of conditions in Share Purchase Agreement and JVA between the parties. Both the parties will have joint management with equal rights to appoint board with equal capital contribution and representation. Each party as a shareholder of the proposed JVC, will have affirmative rights on certain businesses, strategic and governance matters.
Net profit of Bharat Forge surged 198.52% to Rs 299.51 crore on 14.52% rise in total income to Rs 1718.72 crore in Q4 March 2019 over Q4 March 2018.
Bharat Forge is a technology driven global leader in metal forming having transcontinental presence across ten manufacturing locations, serving several sectors including automotive, power, oil and gas, construction & mining, rail, marine and aerospace.
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