Bharat Forge’s Subsidiary to Acquire 90% Stake in Aerospace Firm RS Aerostructures
Bharat Forge Ltd has announced a strategic acquisition by its wholly-owned subsidiary, BF Industrial Solutions Limited (BFISL). BFISL has entered into Definitive Transaction Agreements with RS Aerostructures Limited (RS), aiming to secure a 90% stake in the Bangalore-based aerospace firm.The agreement, reached on April 17, 2026, establishes the terms under which BFISL will subscribe to, and RS will allot, Equity Shares. This proposed transaction is expected to significantly boost the company's footprint in the aerospace sector.
Strategic Objectives of the Acquisition
RS Aerostructures Limited is specialized in the aerospace structural assembly business. The company is engaged in the assembling and maintenance of aerostructures and components for aircraft and other aerospace vehicles, possessing specific expertise in riveting structures, assemblies, and sub-assemblies.According to the company, the acquisition is strategic, enabling Bharat Forge to expand its aerospace product portfolio, customer base, and manufacturing presence in South India by leveraging RS's specialized skills and technical expertise.
Key Transaction Details
The acquisition structure dictates that RS will become a subsidiary of BFISL, which will in turn function as a step-down subsidiary of Bharat Forge Limited.The total cost of acquisition involves the subscription of Equity Shares of RS, which is not expected to exceed Rs. 36 Million. The acquisition is structured through an offer at fair value, assessed by an independent valuer.
| Metric | Detail | Value |
|---|---|---|
| Target Entity | RS Aerostructures Limited | Bangalore |
| Nature of Business | Aerospace Structural Assembly | Assembly and maintenance of aerostructures and components |
| Percentage Acquired | BFISL Stake | 90% |
| Consideration Form | Equity Shares Issued by RS | Rs. 36 Million (Max) |
| Financial Status (RS) | Net Worth / Revenue | Rs. 7,000 / None |
| Indicative Completion Timeline | Timeframe | 45 days |
The acquisition involves RS, which, while incorporated on January 14, 2026, currently reports no revenue and a net worth of Rs. 7,000. The transaction is noted as being conducted at arm's length, as RS is not a related party of Bharat Forge Ltd.
Following the completion of the acquisition within 45 days, RS Aerostructures Limited is expected to become a core operational unit within the Bharat Forge group.
BHARATFORG Stock Price Movement
Today, Bharat Forge Limited shares edged higher to close at ₹1860.5, gaining 0.10% for the session. The stock traded on a total volume of 1.04 million shares during the market day.Source:
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