Bharat Forge to raise Rs 350 crore for expansion

Bharat Forge has informed Bombay Stock Exchange it is considering a proposal to raise up to Rs 350 crore by the issue of appropriate securities to finance the company's capacity expansion plan. Bharat Forge's board will meet December 10 to consider the proposal.

Baba Kalyani, chairman and managing director, was not available for comment. An official at Bharat Forge declined to comment on the issue till the board had met.

Last month, the company was catapulted to the number two position among the global forging companies after it acquired one of the largest forging companies in Germany, Carl Dan Peddinghaus (CDP) GmbH for an undisclosed amount.

In an asset purchase deal, Bharat Forge will be acquiring 100 per cent of the fixed assets, inventory, and business of CDP from the Peddinghaus family, the promoters of CDP, through a suitable special purpose vehicle.

The Rs 634 crore Bharat Forge is India's largest forgings manufacturer with a capacity of 1.2 lakh tons a year. Bharat Forge is the leading supplier of auto ancillaries to global auto majors like Meritor and Daimler Chrysler and will enter the passenger car market when it starts supplying to Toyota in FY05.

The company is doubling its capacity for forged crankshafts with an eye on the global passenger car market.