Bharat Forge to split stock, raise $300 mn

According to the Bombay Stock Exchange announcement made by the company, the stock-split will be done at a later date as determined by the company's board.

Bharat Forge's shares closed at Rs 1417.80, up 7.04 per cent on the Bombay Stock Exchange today.

The board also approved a slew of fund-raising proposals at its meeting today. It proposed to raise up to $ 300 million by the issue of appropriate securities.

However, it is not known whether the company will opt for an overseas equity issue. When contacted by Business Standard, Amit Kalyani, executive director, Bharat Forge, said $300 million will be raised shortly but refused to comment on what instrument will be used to raise the funds.

The board also approved a proposal to increase the limit for acquiring and holding of equity shares by foreign institutional investors (FIIs) up to an aggregate limit of 40 per cent of the paid-up equity share capital.

Bharat Forge's announcement to the Bombay Stock Exchange (BSE) says that the funds raised will be used to meet company's long terms financing requirements.

Kalyani said: "We have certain growth ambitions which will be achieved both organically and inorganically. In addition to acquisitions, we will add new capacities as and when required."