Bharat Forge, a leading auto component manufacturing company, said its board has approved issue of non-convertible debentures for Rs 250 crore on private placement basis to Life Insurance Corporation (LIC) of India. These debentures will be listed on either the National Stock Exchange or the Bombay Stock Exchange (BSE), the company said in a filing to BSE.
Bharat Forge said the issue is being made to meet the capital expenditure, general corporate purposes and long-term working capital requirements.
Earlier this month, LIC, the country’s largest insurer, had increased its stake to 9.21per cent in the company after acquiring 45.33 lakh shares or 2.04 per cent of equity through open market purchases.
Bharat Forge has manufacturing operations across nine locations in six countries — two in India, three in Germany and one each in the US, Sweden, Scotland and China.