Bharat Forge in the Spotlight After $64.5 Million Infusion into U.S. Subsidiaries

Shares of Bharat Forge are set to attract attention following the company’s announcement of a $64.5 million capital infusion into its U.S.-based subsidiaries. The move, approved by the company’s Strategic Business Investment Committee on December 23, 2024, is aimed at strengthening its operations in the United States and reducing debt burdens across its entities. According to the stock exchange filing, Bharat Forge will allocate $19.5 million directly to Bharat Forge America (BFA). Of the remaining funds, $30 million will flow into Bharat Forge Aluminum USA, a wholly owned subsidiary of BFA, and $15 million into Bharat Forge PMT Technologie, another fully owned entity under BFA. All three companies will use the capital for repaying or prepaying outstanding borrowings, thereby enhancing their financial flexibility. While the stock has delivered long-term gains, rising 7.9% over the past year and 4% in 2024 to date, it has faced notable pressure in recent months. Over the last six months, the share price has fallen 26%, with a 3-month decline of 18.11%.

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