BharatForgeDefenceSectorInvestmentNSEKSSL
Bharat Forge to Invest ₹240 Crore in Defence Arm, Aiming for Ammunition Facility
Published: October 16, 2026
Bharat Forge announced a ₹240 crore investment in its defence subsidiary KSSL, allocating ₹163 crore to set up an ammunition filling plant. Shares slipped 0.94% to ₹1,835 on the NSE.
Bharat Forge disclosed a ₹240 crore infusion into its wholly owned defence subsidiary, Kalyani Strategic Systems Ltd (KSSL), with ₹163 crore earmarked for Agneyastra Energetics Ltd (AEL).
The ₹240 crore will be raised via a rights issue at fair value, following board approval on Aug 10 2026, financed through proceeds from a qualified institutional placement and internal accruals.
KSSL will allot shares to Bharat Forge by Oct 31 2026, while planning a separate ₹163 crore rights issue in AEL, to be completed by Sep 30 2027, with cash payment and retaining 100% stake.
The move expands Bharat Forge’s defence footprint; the new facility will specialise in pour‑filling ammunition shells, a niche with growing demand as India ramps up defence procurement.
AEL recorded zero turnover in FY26; no promoter interest or regulatory approvals are required, and the transaction will be conducted on an arm‑sidelined basis.
Shares closed at ₹1,835 on the NSE, down ₹17.40 (0.94%). Investors are watching the capital structure impact, but the company expects the investment to strengthen its defence portfolio ahead of upcoming contracts.