Bharat Forge to raise funds overseas

Bharat Forge, the world's second largest forging company, has decided to raise long term resources to meet its financial requirement.

The board of the company will meet tomorrow to finalise the nature of securities to be issued and the amount of fund to be collected.

Although the company refused to comment on how much money will be raised and through what instrument, industry sources have indicated that the company could go for either foreign currency convertible bonds (FCCB) or a global depository receipts (GDR) issue. They also said that and the amount will be in the range of $80 million.

Baba Kalyani, chairman of Bharat Forge said, "I would not like to pre-empt any board decision we will decide on the mode and the amount only during the board meeting."

Merchant banking sources have indicated that though an enabling resolution to rise the money will be passed at the board meeting the actual money may not be raised immediately.

It is rumoured that Bharat Forge is in talks to acquire a Chinese company and the money raised through the instrument will be used for the same.

Bharat Forge which is currently the second largest forgings maker in the world has indicated a desire to become the world's largest forgings maker and gaining a foothold in China features prominently in its plans.