Premji Invest picks 23% in Bharat Forge unit for ₹300 crore

Mumbai: Premji Invest is set to acquire 23% stake in JS Auto Cast Foundry India Pvt. Ltd, a unit of Bharat Forge ₹300 crore, according to stock market disclosures made by the firm backed by Baba Kalyani. It was stated that the transaction will likely be completed by March 31, 2026.

JS Auto, a wholly owned subsidiary of Bharat Forge, supplies ferrous castings for industrial and automotive applications.

In the application, it was stated that the investment would be made by transferring the capital to the company. JS Auto will use the capital to invest in midstream foundry capacity and seek acquisition opportunities in the industry.

According to the terms of the transaction, Premji Invest will be under a non-compete clause and will not be able to engage in iron casting business in India. It may explore investments in castings outside India, but JS Auto will have the right of first refusal.

The transaction comes nearly four years after Pune-based Bharat Forge acquired Coimbatore-based JS Auto at corporate valuation in July 2022. ₹490 crore. The company’s revenue was just below. ₹700 crore in FY25, accounting for around 5% of Bharat Forge’s consolidated revenue for the year.

Premji Invest is the family office of Wipro founder Azim Premji with $14 billion in assets under management. The investment will be made through PI Opportunities Fund I Scheme II, an alternative investment fund managed by Premji Invest.

“Since our acquisition of JSA in 2022, the company has demonstrated excellent financial performance with growth in sales volume, exports and profitability at a Compound Growth Rate (CAGR) of 17%, 24% and 25% respectively, while enhancing its product line and customer base,” Amit Kalyani, vice president and joint managing director of Bharat Forge, said in a press release.

Premji Invest partner Manoj Jaiswal, who leads the firm’s industrial sectors and buyout investments, said collaborating with leading conglomerates in their growth and consolidation journeys is one of the strategic pillars of the investment firm. “Through our investment in JSA, we look forward to jointly building a leading ferrous casting platform in the country,” Jaiswal said.

Bharat Forge shares rose nearly 5% to close ₹1,443.85 on the BSE on Monday, compared with a 1.2% rise in the benchmark Sensex. The statement was made during trading hours.